- Binance completed an audit that proved that the FDUSD reserves exceeded the circulating amount of the stablecoin.
- The brief detaching of FDUSD from USD occurred after First Digital Trust faced insolvency claims they denied.
- Binance maintains a firm commitment to additional stability examinations, which will protect the long-term stability of FDUSD.
Binance guarantees that FDUSD maintains complete reserve backing despite a short period when the currency lost its original value. After a short period of price changes, Binance confirmed the stability of its stablecoin through verification processes.
In April, Binance issued a blog entry to confirm that the FDUSD reserve report published in February was held. After the February attestation report confirmation and the most recent audit, Binance reviewed the data from its digital USD reserve two times.
FDUSD Reserves Remain Fully Backed
Prescient Assurance auditors confirmed that FDUSD possessed $2.05 billion in reserves on March 1. The current value of U.S. treasuries and fixed deposits in reserves exceeds circulating stablecoins because token exchanges always align with U.S. dollar values. Audits confirm that all principles backing FDUSD redemption exist and grant its users full redemption capability.
The verification procedure became operative after FDUSD stopped its pegged relationship, generating concern in trading and investment circles. According to the announcement made by Tron’s leader Justin Sun, First Digital Trust showed such severe financial turbulence that it seemed headed for bankruptcy.
The panic response to Sun’s announcement resulted in the market devaluation of FDUSD, which caused the currency to drop by 5%. First Digital Trust faced problems when its de-pegging occurred during this period. First, Digital USD experienced a drop in market price to $0.87 until investor buying activity resumed at its investing base.
First Digital Trust denied Sun’s allegations by calling them deceitful while responding to these accusations. First Digital Trust confirmed that FDUSD had not lost its backing status and denied any relationship with this situation. First Digital Trust recognized the problem as a dispute regarding TrueUSD management which its subsidiary handled.
Binance’s Role and Market Reactions
Market participants expressed concern about the exchange’s control of almost 94% of the existing FDUSD supply, which is making the stablecoin vulnerable. Market analysts warned about unstable trading pair stability because excessive dependency on a single stablecoin presents too much risk.
The initial price volatility in FDUSD subsided, resulting in a market value of $0.99 when this report was released. Binance will reassess its financial situation two weeks after publishing the attestation report.
The exchange system made another commitment to constantly evaluate FDUSD stability while maintaining a direct dollar-to-dollar relation with the United States dollar. Binance participates in transparent financial operations and monitoring services, which drive investor confidence regarding USD fiat deposits within the crypto marketplace.
The exchange functions to maintain complete accountability while ensuring regulatory compliance, which helps develop better trust between users and institutional partners. Binance focuses on operational stability, security, and liquidity as key priorities when markets experience periods of adjustments, external uncertainties, and sector developments.
