The world’s largest cryptocurrency exchange, Binance, made a significant announcement on Thursday, revealing plans for zero-fee trading of Bitcoin and Ethereum paired with the newly introduced FDUSD stablecoin. This development is seen as a strategic move by Binance to enhance its market share and rejuvenate the crypto market.
Binance’s decision to bring Bitcoin (BTC) and Ethereum (ETH) into the fold of FDUSD spot and margin trading pairs is accompanied by the implementation of zero-maker and taker fees for the BTC/FDUSD trading pair. The initiation of the Zero Fee Bitcoin Trading Program is set to commence from 08:00 UTC on August 4.
Under this program, users will experience zero fees on maker and taker trades for the BTC/FDUSD spot and margin trading pairs. Additionally, trading the ETH/FDUSD pair will entail a zero maker fee, while the standard taker fee will be applicable based on the user’s VIP level.
To enhance the trading experience, the trading volume associated with the BTC/FDUSD spot and margin trading pairs will be excluded from the calculation of VIP tier volume and the Liquidity Providers program. However, during the promotional period, the benefits of BNB discounts, referral rebates, and other adjustments will not apply to the BTC/FDUSD trading pairs.
This move follows Binance’s previous decision in March to terminate its zero-fee Bitcoin trading program and BUSD zero-maker fee promotion. In response, the exchange shifted from BUSD to the lower-market-cap TrueUSD (TUSD) stablecoin. This transition led to a decline in Binance’s market share by over 50% and a subsequent drop in trading volumes.
Despite these recent challenges, Binance has consistently been a dominant player in Bitcoin trading. Notably, BTC/TUSD and BTC/USDT pairs on Binance remain among the most actively traded pairs, contributing 14.80% and 6.88% of the total trading volume respectively.
The Impact on the Crypto Market
First Digital USD (FDUSD), the stablecoin underpinning this latest move by Binance, is backed by Hong Kong-based custodian and trust company First Digital. While FDUSD’s current market cap of $257 million is relatively modest compared to established stablecoins like USDT, TUSD, BUSD, and USTC, its integration into Binance’s ecosystem and potential for increased minting due to demand could potentially contribute to a notable uptick in market cap.
As Binance maintains its status as a primary hub for Bitcoin trading, the success of this initiative could ripple across the broader crypto market, potentially generating a positive sentiment and encouraging increased trading activity.
