First Digital Labs has recently introduced FDUSD on Arbitrum, which is known as Ethereum’s most prominent Layer-2 network. This launch signifies the stablecoin’s latest expansion and aims to solidify its presence across various blockchains.
The primary goal of this launch is to provide users with access to rapid, cost-effective transactions while establishing First Digital USD (FDUSD) as a fundamental stablecoin for decentralized finance across different regional markets and five blockchains.
FDUSD is already functioning on Ethereum, BNB Chain, Sui, and Solana. The expansion to Arbitrum is a strategic move to address the congestion and throughput issues faced by Ethereum. This initiative comes at a time when there is a growing demand for stablecoins that are compliant, secure, and integrated across multiple blockchains, especially among institutional investors.
Vincent Chok, the CEO of First Digital, emphasized the increasing significance of stablecoins in driving global capital market liquidity over the next few years. He highlighted that FDUSD’s integration with Arbitrum streamlines trade processes, enhances efficiency, and reinforces the company’s position in the DeFi ecosystem.
Ryan De Souza, APAC Partnerships Lead at Offchain Labs, which supports Arbitrum, commended the native deployment of FDUSD for enhancing scalability, reducing costs, and making digital finance more accessible and secure for both institutional clients and everyday users.
The native integration of FDUSD on Arbitrum offers enhanced security, scalability, and streamlined access compared to bridged tokens. This deployment ensures a safer experience for users and facilitates greater liquidity within Arbitrum’s DeFi ecosystem. It also supports everyday applications like remittances and cross-border payments through near-instant settlements.
Starting from Friday, users can leverage FDUSD liquidity through Camelot, a prominent DeFi platform on Arbitrum. Institutional clients also have the option to mint FDUSD directly on-chain by establishing an account with First Digital, simplifying access to digital dollar liquidity for various purposes such as trading, lending, and settlement. This move is expected to further strengthen the DeFi ecosystem on Arbitrum and cater to the evolving needs of both institutions and individual users.