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The First Digital USD (FDUSD) stablecoin lost its U.S. dollar peg after Tron founder Justin Sun claimed that its issuer, First Digital Trust, is effectively insolvent. First Digital Trust denied the allegation, saying that its stablecoin is backed one-to-one with U.S. Treasuries. FDUSD, which is prominently used by Binance after it dropped support for its own BUSD USD stablecoin in 2023, plunged as low as $0.95 in the wake of the allegations. Despite its small market capitalization (about $2.5 billion), it's trading volume is second only to Tether (market cap of about $144 billion) and ahead of USDC ($60 billion).

Stablecoin circulation has exceeded $215 billion globally as of Q1 2025, with on-chain transaction volume hitting $5.6 trillion in 2024-equivalent to 40% of Visa's payments volume. Tether (USDT) and USD Coin (USDC) remain the giants - with ~$140B and ~$55B circulating respectively - but their combined ~90% share in 2024 is slowly diluting as new issuers emerge. Notably, PayPal USD (PYUSD) launched in late 2023, FDUSD (First Digital USD) out of Hong Kong, Agora's AUSD,Ethena's USDe, and others like TrueUSD (TUSD) and DAI collectively make up the remaining ~10%. By 2030, stablecoins are expected to be integral to global finance, especially in cross-border payments, B2B transactions, and digital asset settlement.