First Digital USD (FDUSD) is a stablecoin backed 1:1 by USD, designed to offer a stable digital currency to reduce cryptocurrency market volatility. FDUSD facilitates cross-border transactions with fewer fees and quicker processing than traditional methods. Its stability is ensured by maintaining reserves of USD equal to the value of the circulating stablecoins.
History
FDUSD was launched on June 1, 2023, by FD121 Limited, a subsidiary of the Hong Kong-based firm, First Digital Limited. This launch followed Hong Kong's new guidelines for virtual asset trading platforms.
After Binance decided to phase out support for its native stablecoin, BUSD, it encouraged users to switch to FDUSD. This transition was part of Binance’s strategy to end BUSD support by February 2024 with all BUSD on Binance being converted to FDUSD after February.
At launch, FDUSD was available on the Ethereum and BNB Chain networks. These blockchains use proof of stake (PoS) or proof of staked authority (PoSA) for transaction verification, ensuring record immutability and transparency. At the end of 2024, the token expanded its support to SUI and Solana networks.
First Digital Limited describes FDUSD as a programmable stablecoin, facilitating financial contracts, custody services, and insurance without intermediaries.
What Makes FDUSD Unique
FDUSD offers seamless and efficient transactions, making it a versatile choice for many scenarios. It is fully backed by reserves, including USD and assets of equivalent value, allowing holders to redeem their tokens for USD at a 1:1 ratio. As of March 31 2025, FDUSD reserves consist of US Treasury Bills, Cash, Bank deposits and Reserve Repos. This 1:1 backing ensures trust and reliability.
One key advantage of FDUSD is its focus on transparency and trust with real verifiable reserves. It operates on Solana, SUI, Ethereum and BNB Chain blockchain networks as of April 2025. FDUSD's reserves are held in segregated accounts with a registered trust company, independent from the issuer’s operations, ensuring stability and security.
Finally, Binance’s endorsement of FDUSD as a replacement for its deprecated BUSD stablecoin is an indication of confidence and trust in First Digital USD’s future. Compared to BUSD, FDUSD has greater programmability, operates on more networks, and is backed by a more diversified basket of assets.
How FDUSD is Used
FDUSD can be minted and redeemed without any fees (when this is done through their native website), making it an attractive option for users seeking cost-effective financial solutions. It is available on leading exchanges, ensuring easy access for trading. As a stable store of value, FDUSD offers protection against the volatility common in other cryptocurrencies. This stability makes it an appealing choice for those looking to safeguard their digital assets.
Additionally, FDUSD has the potential to transform the financial sector by increasing access to electronic payments for underserved communities, helping bridge the gap for the unbanked or underbanked. In the decentralized finance (DeFi) space, it can serve as collateral for various financial activities like lending and borrowing on platforms such as Aave. FDUSD's easy tradability on exchanges like Uniswap or 1inch, along with its use in payments and remittances, provides an efficient way to transfer value.
You can buy, hold, and bridge FDUSD in the MEW Mobile app if you prefer using mobile, or by downloading the Enkrypt browser extension if you prefer using a web browser.
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