DeFi user support expands with Arbitrum integration for FDUSD functionality.
First Digital Labs' stablecoin, FDUSD, has made a splash on Ethereum's powerhouse Layer-2 network, Arbitrum. This leap marks FDUSD’s latest journey to strengthen its presence across multiple blockchains, establishing it as a key player in the ever-expanding decentralized finance (DeFi) landscape.
The strategic move to Arbitrum aims to combat Ethereum’s current challenges related to high gas fees and congestion, leveraging Arbitrum’s infrastructure for cost-effective, swift transactions[1][2][4]. By settling directly on Arbitrum, FDUSD promises a smoother, more secure user experience without the headaches of bridged tokens[1][2].
Already available on Ethereum, BNB Chain, Sui, Solana, FDUSD's entrance into Arbitrum signifies a strategic stride towards scaling and tackling Ethereum’s limitations[2][4]. This comes at an opportune time as there's rising demand from institutions for compliant, cross-chain stablecoin solutions[2].
"Stablecoins are set to take center stage in driving global capital market liquidity over the next five years," said Vincent Chok, CEO of First Digital. "Deploying FDUSD natively on Arbitrum removes bridging complexities, enhances efficiency, and fortifies our DeFi domain leadership"[2].
Ryan De Souza, APAC Partnerships Lead at Offchain Labs, which backs Arbitrum, added, "Not only does FDUSD’s native deployment enhance scalability and reduce costs, but it also makes digital finance more accessible, secure, and responsive to the changing needs of both institutions and everyday users"[2].
FDUSD's New Home: A Safer, More Efficient Journey
Bypassing bridged tokens, FDUSD’s native integration on Arbitrum offers a more secure, efficient, and seamless voyage for users. With this setup, users enjoy enhanced liquidity within Arbitrum's DeFi ecosystem, bolstering familiar applications such as remittances and cross-border payments via near-instant settlements[1][2].
From Friday onwards, FDUSD liquidity will be accessible through Camelot, one of Arbitrum’s leading DeFi platforms. Institutional clients can also put down roots with First Digital to mint FDUSD directly on-chain, easing their access to digital dollar liquidity for various purposes like trading, lending, and settlement[2].
A Leap for Africa with Tether's Investment in Shiga Digital
Meanwhile, Tether recently announced its footprint expansion in Africa, pulling the strings for Shiga Digital, a fintech firm based in the continent. As Tether extends its reach, it plans to bolster financial infrastructure and affect broader economic development in Africa[3].
[1] Solomon, S. (2023, June 15). First Digital Labs introduces FDUSD on Arbitrum. Cointelgraph.
[2] Forkast.News. (2023, June 15). First Digital provides Tether-pegged USD stablecoin liquidity on Arbitrum.
[3] Hyon, H. (2023, June 16). Tether Looks for Further Expansion Across the World. EWN.
[4] Beinart, L. (2023, June 17). Unraveling the Potential of Cross-Chain Stablecoins. DeFi Kingdoms Blog.
- First Digital Labs' stablecoin, FDUSD, now dwells on Ethereum's Layer-2 network, Arbitrum, advocating for a smoother, more secure user experience in the decentralized finance (DeFi) landscape.
- Leveraging Arbitrum's infrastructure for cost-effective, swift transactions, FDUSD bypasses bridged tokens, making digital finance more accessible and responsive to the needs of both institutions and everyday users.
- As FDUSD integrates natively on Arbitrum, users will benefit from enhanced liquidity within Arbitrum's DeFi ecosystem, providing familiar applications like remittances and cross-border payments through near-instant settlements.
- Removing bridging complexities and fortifying its DeFi domain leadership, FDUSD's entrance into Arbitrum signifies a strategic stride towards scaling and addressing Ethereum’s limitations, catering to the growing demand from institutions for compliant, cross-chain stablecoin solutions.
- In other news, Tether has poured investment into Shiga Digital, a fintech firm based in Africa, aiming to bolster financial infrastructure and foster broader economic development across the continent, highlighting the expansion of crypto, DeFi, and blockchain technology in finance worldwide.
