The stablecoin market has undergone significant transformations in recent years. As the cryptocurrency ecosystem matures and expands, stablecoins serve as a critical bridge between traditional finance and the digital currency world, witnessing continuous growth in market share and application scenarios.
The Rise and Fall of BUSD
For a long time, BUSD—a collaboration between Paxos and Binance—held its position as the third-largest stablecoin behind USDT and USDC. However, facing regulatory pressure from the SEC, Paxos terminated its partnership with Binance regarding BUSD, ceasing new issuances. Subsequently, Binance delisted BUSD.
Since November 2022, BUSD's trading volume on Binance plummeted, and it is set to phase out by the end of December this year. This shift has created opportunities for emerging stablecoins aiming to capture market share.
Contenders: FDUSD and TUSD
The community's focus has shifted to stablecoins frequently used in Binance Launchpad trading pairs, such as the newly listed FDUSD and the more established TUSD.
FDUSD: The Newcomer
First Digital USD (FDUSD) is issued by FD121 Limited (operating as First Digital Labs), a subsidiary of Hong Kong-based First Digital Trust. Launched on June 1, 2023, FDUSD is a regulated stablecoin targeting the Asian market.
Key Features:
- Backed by reserves held in regulated Asian financial institutions.
- Emphasizes programmable functionality for smart contracts and financial services.
- Currently available on Ethereum and BNB Chain, with plans for multi-chain expansion.
TUSD: The Veteran
TrueUSD (TUSD), launched in April 2018, is one of the earliest regulated stablecoins. Managed by Techteryx Ltd., TUSD has built a robust presence across multiple blockchains and trading platforms.
Key Features:
- Supports 10+ blockchains, including Ethereum, BSC, and Avalanche.
- Widely integrated into DeFi, e-commerce, and payment platforms.
- Real-time attestations by The Network Firm and Chainlink Proof of Reserve (PoR) ensure transparency.
Comparing Application Scenarios
| Aspect | TUSD | FDUSD |
|---|---|---|
| DeFi | Extensive use in lending/AMMs | Emerging presence |
| Payments | Adopted by Travala, UQUID, NOWPayments | Limited real-world adoption |
| Smart Contracts | Basic functionality | Advanced programmability |
| Exchanges | 100+ trading platforms | Binance, BingX, Gate.io |
Market Performance
- TUSD: $2.95B market cap (4th largest stablecoin)
- FDUSD: $960M market cap (rapid growth since launch)
Transparency Measures
- FDUSD: Monthly audits by Prescient Assurance
- TUSD: 24/7 real-time attestations + Chainlink PoR
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FAQ
Why did BUSD decline?
BUSD lost Paxos' support due to SEC regulatory actions, halting new issuances.
Which stablecoin has better DeFi integration?
TUSD currently leads with broader DeFi adoption, though FDUSD is gaining traction.
How do their reserves differ?
Both maintain 1:1 USD backing, but TUSD offers real-time attestations.
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Conclusion
As the stablecoin market approaches trillion-dollar potential, TUSD's established infrastructure and multi-industry integrations position it strongly against FDUSD's technological edge. Binance's evolving stablecoin strategy will determine whether veteran reliability or innovative programmability wins dominance.
The battle underscores stablecoins' critical role in shaping cryptocurrency's bridge to mainstream finance.