Stablecoin Competition in the Open Ecosystem: From FDUSD to USD1, How Will the Next-Generation Products Break Through

【BitPush】In the 2025 year-end dialogue on BNB Chain, an interesting question was raised—why does Binance support both stablecoin projects like FDUSD and USD1 simultaneously? Some questioned whether this constitutes a “horse race” model.

In response, industry insiders answered straightforwardly: this is not a horse race at all, but an inevitable result of an open ecosystem. When a platform or on-chain ecosystem is sufficiently open, it naturally attracts many teams to enter and launch projects—this is the normal way of doing business.

Interestingly, although platforms hope each project can succeed, the objective reality is that there will inevitably be competition among projects. Moreover, this competition is often healthy. Ultimately, network effects will play a decisive role, and users will naturally choose the most competitive and highest-quality products. This is similar to the survival of the fittest in the market—not forced elimination, but genuine selection.

It is worth noting that some predict second-generation stablecoins will perform better than current products. This means the entire stablecoin track is still rapidly iterating, and we may see more innovative and efficient solutions emerge in the future. For traders and ecosystem participants, this is undoubtedly a positive signal.