First Digital USD (FDUSD)

About First Digital USD

What is First Digital USD?

First Digital USD (FDUSD) is a stable digital currency that aims to maintain a 1:1 peg with the US dollar. This stablecoin is designed to provide a reliable alternative to traditional cryptocurrencies, which can experience significant price volatility. FDUSD is fully backed by cash or cash equivalent assets, with each token intended to be redeemable 1:1 for US dollars. The reserves that back FDUSD are held in fully segregated, bankruptcy-remote holding structures, which are intended to maintain its stability. FDUSD is operated by First Digital Labs, a financial technology company that is not a bank, and the custody services of the reserves are provided by First Digital Trust Limited.

How does First Digital USD work ?

FDUSD operates by striving to maintain a 1:1 peg with the US dollar, achieved by ensuring that the value of the reserve assets held matches or exceeds the total quantity of outstanding stablecoins. This meticulous maintenance of reserves serves as a guarantee for the issuer’s commitment to redeem the stablecoin at its nominal value. FDUSD is fully programmable, which allows for the creation of financial contracts, escrow, and insurance without intermediaries. The stablecoin is available on Ethereum and BNB Chain, and it aims to support more blockchains.

What are the potential use cases for First Digital USD ?

FDUSD aims to improve the efficiency of financial transactions by reducing transaction costs and improving the speed and accuracy of these transactions. It can facilitate cross-border transactions and reduce the fees and processing times associated with traditional methods. The programmability of FDUSD allows for the creation of financial contracts, escrow, and insurance without intermediaries. It can be used by businesses and individuals alike, providing a stable and reliable digital currency solution. FDUSD can be accessed either directly from First Digital Labs by key industry players, financial intermediaries, or professional investors, or through secondary markets.

What is the history of First Digital USD ?

FDUSD is a product of First Digital Labs, a research and development division of First Digital that specializes in the innovation and advancement of digital currencies. The team at First Digital Labs combines expertise in traditional finance with deep insights into emerging technologies, positioning them as involved in the development of stablecoins. FDUSD was created with the mission to contribute to the global financial landscape by utilizing digital currencies. The stablecoin is backed by fully reserved assets, held in fully segregated bankruptcy-remote holding structures, intended to maintain its stability.