First Digital USD (FDUSD) is a reserve-backed stablecoin introduced in June 2023 by a subsidiary of First Digital Limited, a financial firm based in Hong Kong.
The core logic of FDUSD revolves around its nature as a programmable stablecoin, enabling the execution of financial contracts, escrow services, and insurance without intermediaries. It is backed by high-quality reserves - cash and cash equivalents - ensuring that each FDUSD token is redeemable for its equivalent value in US dollars, thereby maintaining a stable 1:1 peg with the US dollar.
The origin of FDUSD dates back to its debut listing on Binance, the world's largest cryptocurrency exchange by volume, in July 2023. It was issued under the entity FD121 Limited, operating as First Digital Labs.
Important historical milestones for FDUSD include its launch with a 1:1 backing by high-quality cash and cash equivalent reserves, held in segregated accounts and audited by independent third parties. This launch was notable for its emphasis on providing diversification and stability in the volatile cryptocurrency market. Furthermore, FDUSD's design as a programmable digital asset capable of interacting with financial smart contracts and other services without intermediaries marked a significant step towards enhancing the efficiency and security of financial transactions.
