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First Digital USD
Development
White paperFDUSD White Paper
Initial release2023-06-01[citation needed]
Valuation
Exchange ratePegged to the USD
Website
Websitefirstdigitallabs.com

First Digital USD or briefly FDUSD is a cryptocurrency stablecoin pegged to the United States Dollar, launched by Hong Kong based company First Digital Labs in 2023.[1]

History

First Digital USD made its debut on June 1, 2023, under the auspices of First Digital Labs, a financial firm headquartered in Hong Kong.[citation needed]

The coin was initially deployed on the Ethereum and BNB Chain networks, adhering to the ERC20 and BEP20 standards, respectively. These decentralized blockchains leverage consensus mechanisms such as proof of stake (PoS) or proof of staked authority (PoSA), ensuring transaction confirmation, record immutability and transparency for market participants.[2][non-primary source needed]

The coin stability is supported by cash reserves and investments in US Treasuries.[3] Its ability to maintain a peg to the US Dollar has been deemed 'constrained' by credit rating agency S&P Global Ratings in a report issued in December 2023.[4]

See also

References

  1. ^ "Hong Kong-based First Digital rolls out USD stablecoin". The Paypers. Retrieved 1 March 2024.
  2. ^ "First Digital USD Whitepaper" (PDF). First Digital Labs. Retrieved 22 February 2024.
  3. ^ Anneke Kosse, Marc Glowka, Ilaria Mattei and Tara Rice (November 2023). BIS Papers No 141 - Will the real stablecoin please stand up? (PDF) (Report). Bank for International Settlements. p. 15. Retrieved February 28, 2024. the reserves of First Digital USD also consist mainly of cash or cash equivalents (79%)((cite report)): CS1 maint: multiple names: authors list (link)
  4. ^ "Stablecoin Stability Assessment First Digital USD (FDUSD)" (PDF). S&P Global Ratings. 12 December 2023. Retrieved 13 March 2024.