Binance Boosts First Digital's Stablecoin: Zero-Fee Bitcoin and Ether Trading

Binance, the world's largest cryptocurrency exchange, is set to introduce fee-free trading for bitcoin (BTC) and ether (ETH) using First Digital's FDUSD stablecoin, starting from tomorrow. The exchange will waive all trading fees for the BTC/FDUSD pair, and maker fees for the ETH/FDUSD pair will be reduced to 0% until further notice, as part of Binance's strategic initiative. This move by Binance comes as the exchange aims to diversify its trading activities by emphasizing stablecoin pairs. This approach follows regulatory restrictions imposed on Binance USD (BUSD) earlier this year, with New York state regulators compelling BUSD issuer Paxos to cease its stablecoin issuance in February. In response to the regulatory developments, Binance promoted trading using TrueUSD (TUSD) by eliminating trading fees. This decision led to a significant surge in TUSD trading volume, resulting in a substantial increase in its market capitalization, which now stands at nearly $3 billion. Binance initially listed FDUSD on July 26, facilitating fee-free conversion of the stablecoin to other established stablecoins such as USDT and TUSD. The recent announcement indicates that this promotion will encompass both existing and future trading pairs involving FDUSD. The FDUSD stablecoin is issued under the oversight of a registered trust owned by First Digital, operating in accordance with Hong Kong's digital asset regulations. By introducing fee-free trading for bitcoin and ether through the FDUSD stablecoin, Binance aims to enhance accessibility and liquidity in its trading ecosystem while navigating the evolving regulatory landscape. This strategic move is aligned with Binance's commitment to providing innovative solutions and maintaining its position as a global leader in the cryptocurrency exchange space.