First Digital USD (FDUSD)

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


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]

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 Reserve

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. The reserves for FDUSD comprise low-risk assets, such as short-term U.S. treasury bills, as well as cash and cash equivalents in U.S. dollars. The reserves are held by a custodian, First Digital Trust Ltd., a public trust company registered in Hong Kong, and at financial institutions in Switzerland, Australia, and Hong Kong. [4][9]

First Digital Labs publishes a monthly reserve report outlining the composition of reserves. In addition, these assets are subject to monthly review and attestation by an independent auditor. These reports provide transparency for the FDUSD holders about the reserve status of the . [5][9]

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First Digital USD (FDUSD)

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Edited On

January 9, 2024

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added info on reserve


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