3 Min read
In Cryptorefills, our goal has always been to provide new solutions for crypto offramping and after numerous stablecoins (USDC, USDT, DAI, and others), today we launch FDUSD - First Digital USD, a reserve-backed stablecoin, which is available for our users on the Binance Smart Chain.
FDUSD is a stablecoin designed to maintain a stable value by being backed by one U.S. dollar or an asset of equivalent value held in reserves. These reserves are kept in segregated accounts by First Digital Trust Limited, a trust company registered under Hong Kong law. Furthermore, the reserves are required to consist of cash or highly liquid assets, enhancing FDUSD's stability. At its launch, FDUSD was issued on the Ethereum and BNB Chain networks.
To provide transparency and assurance to users, FDUSD's issuer publishes an "attestation of reserve" report that is audited by independent auditors. This report demonstrates that the supply of FDUSD in circulation is fully supported by an equivalent value of cash or cash equivalents held in custody.
Vincent Chok, CEO of First Digital, commented: "I am delighted to emphasize the significance of this milestone as we introduce FDUSD to the world. The launch of this stablecoin represents a major stride forward in our mission to provide a secure and efficient digital currency that can be seamlessly integrated into everyday transactions. Transparency and robust oversight are paramount in building trust in stablecoins and in turn the adoption of this innovative blockchain technology, especially at a time when stability in the traditional financial system is uncertain. Going forward, investors, retail, and institutional will be looking for predictability, which is why FDUSD was conceptualized. First Digital is fully committed to regulatory compliance to set a new standard for legitimacy in the space."
A very simple step-by-step guide:
If you are a key industry player, a financial intermediary, or a professional investor of a certain stature and meet the requisite criteria, you can directly purchase FDUSD from First Digital Labs, while it does not sell tokens directly to retail customers. As a retail customer, you can still obtain FDUSD through secondary markets without becoming a client of First Digital Labs. Many leading cryptocurrency exchanges list FDUSD and offer substantial liquidity. This provides an accessible and convenient way for interested individuals to acquire FDUSD. It's always essential, however, to conduct thorough research and ensure the credibility of the exchange you're using.
On the other hand, to redeem your FDUSD stablecoin, you must first become a client of First Digital Labs and meet specific requirements, including Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) checks. Upon successful completion of these checks, you can exchange your FDUSD for its equivalent in fiat currency, thereby taking it out of circulation. Alternatively, you can sell your FDUSD tokens on the secondary market through a cryptocurrency exchange or an Over-the-Counter (OTC) provider that supports FD121's stablecoins.
In a cryptocurrency market that continues to grow and evolve, stablecoins like FDUSD play a pivotal role in providing stability and utility. Cryptorefills will always keep a close eye on the latest and most widely used stablecoins to provide the best options to our users. Which other stablecoin should we add? Please write it to us at email@example.com!