Hong Kong company issues stablecoin and lists it on Binance

At 16:00 on July 26, Binance launched a new stablecoin [First Digital USD] (FDUSD) and opened new spot trading pairs. Stablecoins have become an important development direction of the current industry and an important asset type of Crypto. As we all know, Binance's own stablecoin BUSD has encountered regulatory difficulties, and USDC issued by Centre and TUSD created by TrustToken have all fallen into trouble or been abandoned. What is the difference between the FDUSD listed on Binance today and these leading stablecoins?

The issuer of First Digital USD (FDUSD) is FD121 Limited (brand name First Digital Labs), whose parent company First Digital Trust is a qualified custodian and trust company headquartered in Hong Kong. After the new policy on retail cryptocurrency trading in Hong Kong came into effect on June 1 this year, First Digital Trust immediately announced the launch of the US dollar-pegged stablecoin "FDUSD" . This stablecoin is regulated in Asia. First Digital began financing in 2020 and has completed three rounds so far, totaling US$25.15 million.

The issuance of FDUSD aims to provide users with a reliable digital currency, reduce the impact of cryptocurrency market fluctuations, improve efficiency by reducing transaction costs, and provide faster and safer transactions. FDUSD is fully supported by 1:1 US dollar assets, and the assets behind it are held by First Digital Trust Limited. Currently, First Digital has issued a total of 10,110,414 FDUSD on Ethereum and BNB Chain. The project contract is audited by Paidun.

Compared with other stablecoins issued earlier, FDUSD has the following characteristics in addition to being backed by Hong Kong and having Asian origins, being issued in accordance with Hong Kong's new policies and being regulated in Asia, and all reserves are stored in independent accounts of regulated financial institutions in Asia:

Transferable

As an interchangeable digital currency, FDUSD supports frictionless and smooth transactions, making it a convenient choice for various application scenarios.

Redeemable

FDUSD is backed by high-quality reserve assets (cash and cash equivalents), which gives holders the ability to redeem their FDUSD tokens for an equivalent amount of U.S. dollars. This feature provides security for the stablecoin's reserves, and users can trust that FDUSD will always be backed 1:1.

Programmable

FDUSD is programmable, allowing the creation of smart contracts, escrow services, and insurance arrangements without the need for intermediaries. This programmability gives users greater control over their financial transactions while reducing transaction costs and increasing transaction speed and accuracy.

Low Fees

As a blockchain-based cryptocurrency, a significant advantage of FDUSD is its ability to provide cost-effective transactions with minimal fees. Unlike traditional financial transactions, which often incur high fees, blockchain-based transactions generally involve lower costs. This cost-effectiveness makes FDUSD an attractive economic choice for users.

Runs on a decentralized network

As a stablecoin based on blockchain technology, FDUSD runs on decentralized networks that are distributed across multiple nodes. This enhances transparency, security, and resilience because no single entity fully controls the network.

Bankruptcy remoteness from the trustee

FDUSD's legal reserves are held by the designated custodian, First Digital Trust Limited, in an account that is segregated from the custodian's operating accounts. This means that even in the unlikely event of the custodian's bankruptcy, the reserves backing FDUSD (to the extent held by the custodian or on behalf of the custodian) remain segregated and protected from the custodian's other assets, ensuring that the stablecoin remains anchored and secure.