First Digital USD (FDUSD)

Introduction to First Digital USD (FDUSD)

Stability is a word that the cryptocurrency sector is seldom known by. What we’re talking about is basically the volatility that plagues the landscape; the volatility that has burned millions off of investors’ hands, particularly in 2022.

This brings to mind the much-dreaded Terra Luna, which lost an eye-watering $40 billion, and it was a stablecoin to boot, a stablecoin that had lost its peg to the dollar.

But besides that, what warrants mentioning is that the other coins that aren’t stablecoins derive part of their value from speculative investing, which, by definition entails some form of volatility.

So, volatility can be good just as it can be very bad, which 2022 was a great example of. Still, while 100% stability might not be so good from an investment angle, if you are to buy things that aren’t investments, i.e., those basic goods and services, like food and water, and take into consideration the whole medium of exchange thing, stability is quite needed then.

This just means that you need a stablecoin that is able to maintain its peg indefinitely, or at least for a much longer time than Terra, and here, we’ll be looking at one such cryptocurrency or stablecoin, the FDUSD, short for First Digital USD.

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The Genesis of First Digital USD

FDUSD first launched last year in June 2023, with the firm responsible for that being FD121 Limited, which happens to be a subsidiary of First Digital Limited, a financial business headquartered in Hong Kong.

Also, its launch took place shortly after the “Guiding Principles for Virtual Asset Trading Platform Operators” were implemented in Hong Kong.

Once the support for BUSD, i.e., Binance’s native stablecoin, discontinued, Binance encouraged users holding Binance USD (BUSD) stablecoins to shift to FDUSD within an official statement, which it issued in September 2023.

That move came as a part of the strategy undertaken by Binance to steadily phase out the support for BUSD, and that process concluded in February of this year, i.e., 2024.

When it launched, it was no wonder, then, that the FDUSD token was issued on the BNB Chain and Ethereum networks, which follow the BEP-20 and ERC-20 standards, respectively.

In case you didn’t know, these decentralized blockchains offer consensus information for transactions using proof-of-staked-authority (PoSA) and proof-of-stake (PoS), offering immutability of records coupled with public transparency for market participants.

First Digital Limited further asserts that the FDUSD token serves as a programmable stablecoin, allowing financial contracts, insurance, and custody services to be executed without the involvement of intermediaries.

Understanding FDUSD’s Underlying Technology

So, as you’ve gathered by now, FDUSD is meant to be backed by an asset equivalent to one US dollar or a dollar itself, while being held within reserves with First Digital Trust Limited as its appointed custodian, of course.

As a trust firm that’s registered under Hong Kong’s regulations, First Digital Trust Limited has been mandated to safeguard every FDUSD reserve inside segregated accounts.

This just implies that there’s no commingling of any FDUSD reserve with the firm’s other assets. Reserves have also been mandated to be held within highly liquid assets or cash, which the company claims will help guarantee that 1:1 backing of FDUSD.

The FDUSD issuer also publishes a report called the “attestation of reserve” that independent auditors audit to show that FDUSD’s circulating supply is completely supported by an equal amount of cash or its many equivalents, all of which are held in custody.

While FDUSD was initially issued on the Binance Chain and Ethereum networks, that doesn’t necessarily mean that it will not be issued on any other blockchains later on.

There are already a ton of stablecoins within the market, which is why FDUSD wishes to provide some extra instruments to diversify its offerings to those who happen to be interested in trading with stablecoins or just generally using them.

FDUSD Tokenomics

Moving on to those tokenomics, the price is currently valued at, as you guessed it, $1, and exactly that, at the time of this writing. The market capitalization is currently over $3.8 billion with the fully diluted valuation being the same.

Surprisingly, its daily trading volume is more than $8.6 billion! As for the supply end of things, its circulating and total supply are both the same, coming at over 3.8 billion tokens.

The Role of FDUSD in Financial Markets

Cryptocurrencies have some benefits over their fiat counterparts as forms of payment along with a couple of other use cases too. But if you were looking for something more specific, for starters, it may be used for cost-efficient and quick cross-border transactions, offering a more economical option involving remittance services.

When paired against traditional bank transfers or wires, stablecoins such as FDUSD tend to have lower fees, with transactions being processed more quickly.

On the business end of things, those lower fees and higher throughput will certainly be valuable, particularly in the context of international transactions, as those often come with additional costs like cross-border transfer fees and currency conversions if you take the traditional payment route.

Also, the use cases aren’t just limited to the external, even within the cryptocurrency landscape, the FDUSD token may even be utilized as an inflationary hedge, an anchor of stability amidst periods of extreme volatility, Investors may then convert other cryptocurrency into stablecoins to lock in their gains, protecting their investments from those market swings, which can prove rather problematic at times.

How FDUSD Promotes Financial Inclusion

Another thing that warrants a mention is the potential that stablecoins like FDUSD hold in furthering the ethos of DeFi, which has always been to “bank the unbanked.” 

Around the world, millions of people within developing nations lack access to basic financial services that we take for granted, i.e., the better management of our finances, like better security for our funds, or simply services like loans, insurance products, and earning possibilities.

These are also services that traditional banking infrastructures have failed to provide due to the extensive paperwork requirements and costs normally associated with them. So, with stablecoins like FDUSD, all the necessary boxes can be ticked, where all you would need is a smartphone and Internet connection, and you’re all set for financial autonomy and accessibility.

Acquiring and Using FDUSD

So has FDUSD caught your attention now and you’re looking to buy some of those tokens for yourself? Well, you’re in luck, as there are many exchanges out there that offer it, even on the likes of Uniswap, which would be the easiest way for you to get a hand on some, as you’ll only need to connect your wallet and swap them with whatever token you currently own.

Other exchanges, like KuCoin, Coinbase, or Binance might prove to be more of a hassle. Regardless, once you have acquired them, consider storing them safely in a cold wallet, where they’ll be safe from the many threats you can find online.

FDUSD’s Compliance and Regulatory Framework

According to First Digital themselves, it was in Asia that the FDUSD token was developed, which is why it has been able to operate within a regulatory environment that’s considerably friendlier when compared to the United States.

Still, FDUSD is keen on adopting a compliance-first approach and has a goal, which is to see the token become the very first regulated stablecoin that’s approved by the HKMA, aka the Hong Kong Monetary Authority.

Surprisingly, the token has grown considerably within a short span of time, and the team behind the token hopes to balance regulation and compliance while ensuring utility within both the DeFi and CeFi systems.

Comparing FDUSD with Other Stablecoins

Well, the aspect that does stand out would have to be its regulatory compliance, and as for the other, that would be how quickly it has amassed value in such less time, eventually becoming the fourth largest stablecoin by market capitalization.

Still, other than that, a lot of the risks normally associated with stablecoins can apply to it too, namely the risk of depegging, which is still very much there, and more, so you probably have to be on the lookout for those.

Conclusion: The Impact and Future of First Digital USD

The stablecoin landscape is expected to grow substantially, up to trillions of dollars, and that too within the next 5 years, at least according to some market researchers. Hence, FDUSD is one of the many new players in this flourishing space.

With the growing adoption of cryptocurrency, both crypto-native and traditional financial institutions have been increasingly looking to issue their own stablecoins, tailoring them to their own target audiences and niches.

This implies that users will be presented with a wider range of choices when selecting the stablecoins that they’ll need.

But while stablecoins bring numerous benefits to the table, they also come with their own set of risks. So, you’ll have to exercise caution while conducting some thorough research prior to interacting with any token or stablecoin.

Always be on the lookout for the whitepaper, audit findings, reserve reports, or any other legal related disclaimers, which may typically be found on the token’s website.

We Coin-Labs.com provides only objective information about First Digital USD (FDUSD).
Therefore, we are not responsible for the investment decision in First Digital USD (FDUSD) and the resulting loss.

First Digital USD (FDUSD) Basics

Here are some factors that investors should consider before investing in First Digital USD (FDUSD).

Cryptocurrency Features	First Digital USD (FDUSD) ()
Publisher or Developers
Headquarters (Registration Number)
Symbol
Platform
Published Date (CMC Registration)	2024-10-02
Max Supply	958,691,258,152,859

Reliability Score of First Digital USD (FDUSD) in 2024

These are indexes mesuring the investment reliability of First Digital USD (FDUSD) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 0 Exchanges
Number of Available Pairs Worldwide	1 Pairs
Market Cap of the Cryptocurrency	6,683,329 USD (Rank #1295)

The table above shows the result of investment suitability evaluation for First Digital USD (FDUSD).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

First Digital USD (FDUSD) Price

Here are the price and recent trading volume of First Digital USD (FDUSD). (Data of 2024-10-03 00:15:00)

Price Items	Price and Trading Volume of First Digital USD (FDUSD)
First Digital USD (FDUSD) Price	0.000 USD
Price Change 24h	-5.48%
Price Change 7d	-4.99%
Trading Volume 24h	11 USD
Trading Volume Change 24h	-82.47%

Cryptocurrency Metadata

You can check the development status and social media information of First Digital USD (FDUSD) through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy First Digital USD (FDUSD)

Here are the top ten world crypto exchanges where traders can buy First Digital USD (FDUSD) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Not listed
Bitfinex	Not listed
OKX	Not listed
Huobi	Not listed
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Not listed

Frequently Asked Questions