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On July 26th at 16:00, Binance listed a new stablecoin, ""First Digital USD"" (FDUSD), and opened trading for new spot trading pairs. Stablecoins have become an essential focus of the industry and an important asset class in the world of crypto. Binance has its own stablecoin, BUSD, which has faced regulatory challenges. Other stablecoins like USDC issued by Centre and TUSD created by TrustToken have also faced difficulties or have been abandoned. How does FDUSD, newly listed by Binance today, differ from these earlier stablecoins?
First Digital USD (FDUSD) is issued by FD121 Limited, whose parent company, First Digital Trust, is a qualified custodian and trust company headquartered in Hong Kong. After the new regulatory measures for retail crypto trading went into effect in Hong Kong on June 1st, First Digital Trust announced the launch of ""FDUSD,"" a stablecoin pegged to the US dollar, which is regulated in Asia. First Digital has been raising funds since 2020, with a total of $25.15 million raised in three rounds.
FDUSD's issuance aims to provide users with a reliable digital currency, reducing the impact of cryptocurrency market volatility. It aims to improve efficiency by reducing transaction costs and providing faster and more secure transactions. FDUSD is fully backed by 1:1 USD assets, held in independent accounts at regulated financial institutions in Asia. Presently, First Digital has issued a total of 10,110,414 FDUSD on both the Ethereum and BNB Chain blockchains. The project contract has been audited by PeckShield.
In comparison to previously issued stablecoins, FDUSD stands out in several ways. It is transferable and can be easily exchanged for various applications, making it a convenient choice. It is redeemable, backed by high-quality reserve assets (cash and cash equivalents), enabling token holders to convert their FDUSD tokens into an equivalent amount of USD. FDUSD is also programmable, allowing the creation of smart contracts, custody services, and insurance arrangements without intermediaries. This programmability gives users greater control over their financial transactions, reducing costs and improving speed and accuracy.
Moreover, FDUSD offers low fees as a blockchain-based cryptocurrency, providing cost-effective and low-cost transactions, which are more appealing to users compared to traditional financial transactions that often involve high fees. Being decentralized and operating on blockchain technology, FDUSD enhances transparency, security, and resilience, as it's not controlled by a single entity. Additionally, it is isolated from custodian bankruptcy, as FDUSD's legal reserve funds are held by a designated custodian, First Digital Trust Limited, in accounts separate from their operational accounts. This ensures that the stablecoin remains anchored and secure, even in the unlikely event of custodian bankruptcy. |
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Post time 20-10-2023 09:47:15