Read

Edit

History

Notify

Share

First Digital USD (FDUSD)

First Digital USD (FDUSD) is a reserve-backed issued by a subsidiary of Hong Kong-headquartered financial firm, [1][3]

Overview

First Digital USD (FDUSD) was launched on June 1, 2023, by FD121 Limited, a subsidiary of Hong Kong-headquartered financial firm, . It was launched shortly after the implementation of the “Guiding Principles for Virtual Asset Trading Platform Operators” in Hong Kong. [2]

Following the discontinuation of support for native stablecoin, , Binance encouraged users who hold Binance USD (BUSD) stablecoin assets to transition to FDUSD in an official statement issued on September 1, 2023. The move comes as part of Binance’s strategy to gradually phase out its support for BUSD, with plans to conclude the process by February 2024. [7][8]

The value of the FDUSD coin is backed by the US dollar or an equivalent asset representing the fair value of the US dollar at a 1:1 ratio. According to the company, the reserves supporting the FDUSD coin are held in separate accounts at financial institutions in Asia. [4]

The issuer of FDUSD publishes regular attestation reports complied by third-party auditing companies. These reports provide transparency for the FDUSD holders about the reserve status of the . [5]

At launch, FDUSD was issued on the and networks which follow the & standards respectively. These decentralized blockchains provide consensus confirmation of transactions using (PoS) or proof of staked authority (PoSA) consensus providing immutability of records and public transparency to market participants. [5]

First Digital Limited claims that the FDUSD coin acts as a programmable that enables the execution of financial contracts, custody services, and insurance without intermediaries. [5][6]

FDUSD Utility

FDUSD offers remittance by allowing investors to make effective cross-border payments. It serves as a payment solution for businesses and individuals to process payments with efficient processing which is valuable for international transactions. It also allows investors to hedge against price volatility. [6]

See something wrong? Report to us.

First Digital USD (FDUSD)

Feedback

Did you find this article interesting?

Twitter Timeline

Loading...

Loading

Media

REFERENCES

Join the IQ Brainlist

Sign up for the IQ Brainlist to get early access to editing on the IQ.wiki beta site!

Join Now

Subscribe to our newsletter

Never miss any of the most popular and trending articles on IQ.wiki when you sign up to our email newsletter.

Subscribe

IQ.wiki

IQ.wiki's vision is to bring blockchain knowledge to the world and knowledge onto the blockchain. A part of Brainfund Group.

https://twitter.com/IQWIKIhttps://www.reddit.com/r/Everipedia/https://t.me/everipediahttps://www.instagram.com/iqwiki_/https://github.com/EveripediaNetworkhttps://discord.gg/x9EWvTcPXthttps://web.facebook.com/everipedia?_rdc=1&_rdr

IQ

What's IQ?StakingBonds

Company

About usCareersBrandingIQ GPTIQ Dashboard

© 2023 IQ.wiki Powered By BrainDAO& IQ