- Wintermute moved 75M FDUSD to First Digital Labs
- Likely purchased FDUSD below $1 during depeg
- Redeemed at full value to secure potential gains
Capitalizing on a Depeg Opportunity
Wintermute, a leading crypto market maker, has executed a major move in the wake of FDUSD’s recent depeg. After the stablecoin temporarily fell below its intended $1 value, Wintermute transferred 75 million FDUSD to First Digital Labs, the issuer of the token.
This transaction strongly suggests that Wintermute bought large volumes of FDUSD at a discount during the dip and then redeemed them for $1 each through First Digital. If that’s the case, the arbitrage strategy could have netted them a sizable profit with minimal risk.
How Stablecoin Arbitrage Works
Stablecoins like FDUSD are designed to maintain a 1:1 peg with the U.S. dollar. However, during moments of high market stress or technical disruptions, they can briefly lose that peg — presenting opportunities for savvy players.
When FDUSD depegged, its market price dropped below $1, likely allowing buyers like Wintermute to scoop it up at a discount. By redeeming those tokens directly through the issuer at the full dollar value, they effectively pocket the difference.
This kind of arbitrage isn’t new in the crypto space, but Wintermute’s large-scale and timely move shows their experience and speed in executing such strategies.
Implications for the Market
Wintermute’s redemption of 75 million FDUSD also signals confidence in the backing of the stablecoin and the reliability of First Digital Labs. For the broader market, such redemptions help bring stablecoins back to their peg and restore trust.
Moreover, this event reminds retail and institutional investors alike that in moments of volatility,
