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{{notability|corp}}
{{Infobox cryptocurrency
{{Infobox cryptocurrency
| currency_name = First Digital USD
| currency_name = First Digital USD
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The coin was initially deployed on the [[Ethereum]] and [[Binance#BNB|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.<ref name="whitepaper">{{Cite web |title=First Digital USD Whitepaper|url=https://firstdigitallabs.com/workspace/uploads/FDUSD-Whitepaper-25216064ca0cc8.pdf|access-date=22 February 2024 |website=First Digital Labs}}</ref>{{primary source inline|date=February 2024}}
The coin was initially deployed on the [[Ethereum]] and [[Binance#BNB|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.<ref name="whitepaper">{{Cite web |title=First Digital USD Whitepaper|url=https://firstdigitallabs.com/workspace/uploads/FDUSD-Whitepaper-25216064ca0cc8.pdf|access-date=22 February 2024 |website=First Digital Labs}}</ref>{{primary source inline|date=February 2024}}


The coin stability is supported by adequate<ref name=SP>{{Cite web |title=Stablecoin Stability Assessment - First Digital USD (FDUSD)|url=https://www.spglobal.com/_assets/documents/ratings/research/101590838.pdf|access-date=25 February 2024 |website=SPGlobal.com}}</ref> cash reserves and investments in [[US Treasuries]].<ref>{{cite report |author=Anneke Kosse, Marc Glowka, Ilaria Mattei and Tara Rice |author-link= |date=November 2023 |title=BIS Papers No 141 - Will the real stablecoin please stand up? |url=https://www.bis.org/publ/bppdf/bispap141.pdf|publisher=[[Bank for International Settlements]] |page=15 |docket= |access-date=February 28, 2024 |quote=the reserves of First Digital USD also consist mainly of cash or cash equivalents (79%)}}</ref> 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.<ref>{{Cite web |title=Stablecoin Stability Assessment First Digital USD (FDUSD)|url=https://www.spglobal.com/_assets/documents/ratings/research/101590838.pdf|access-date=13 March 2024|website=S&P Global Ratings|date=12 December 2023}}</ref>
The coin stability is supported by cash reserves and investments in [[US Treasuries]].<ref>{{cite report |author=Anneke Kosse, Marc Glowka, Ilaria Mattei and Tara Rice |author-link= |date=November 2023 |title=BIS Papers No 141 - Will the real stablecoin please stand up? |url=https://www.bis.org/publ/bppdf/bispap141.pdf|publisher=[[Bank for International Settlements]] |page=15 |docket= |access-date=February 28, 2024 |quote=the reserves of First Digital USD also consist mainly of cash or cash equivalents (79%)}}</ref> 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.<ref>{{Cite web |title=Stablecoin Stability Assessment First Digital USD (FDUSD)|url=https://www.spglobal.com/_assets/documents/ratings/research/101590838.pdf|access-date=13 March 2024|website=S&P Global Ratings|date=12 December 2023}}</ref>

In an official statement released on September 1, 2023, [[Binance]], a major cryptocurrency exchange platform, announced the discontinuation of support for its native stablecoin, [[BUSD|Binance USD]] (BUSD), urging users to transition to First Digital USD, with the culmination of this process slated for February 2024.<ref>{{Cite web |title=Binance Initiates Transition Away From BUSD Support, Encourages Users to Embrace FDUSD|url=https://www.binance.com/en/feed/post/1071371|access-date=22 February 2024 |website=Binance}}</ref>{{primary source inline|date=February 2024}}

==Adoption==

In February 2024, FDUSD experienced a 51% increase in trading volume, reaching $122 billion across centralized exchanges, thus surpassing [[Circle (company)|Circle's]] [[USD Coin]] (USDC) to become the second most traded pair for [[Bitcoin]].{{cn|date=February 2024}} This ascent is largely attributed to the zero-trading fee program implemented on Binance.<ref name="yahoo">{{Cite web |title=Hong Kong Stablecoin FDUSD's Market Cap Surges by 10x In Two Days|url=https://finance.yahoo.com/news/hong-kong-stablecoin-fdusd-market-211222876.html|access-date=1 March 2024 |website=Yahoo Finance|date=4 August 2023 }}</ref>
As of March 2024, FDUSD is the fourth largest stablecoin in terms of market capitalization, after [[Tether (cryptocurrency)|Tether]], USD Coin (USDC), and [[Dai (cryptocurrency)|Dai]].<ref>{{Cite web |title=Top Stablecoins by Market Cap |url=https://web.archive.org/web/20240301083142/https://www.coingecko.com/en/categories/stablecoins|access-date=13 March 2024|website=Coingecko|date=13 March 2024}}</ref>


== See also ==
== See also ==
*[[Tether (cryptocurrency)|Tether]]
*[[Tether (cryptocurrency)|Tether]]
* [[USD Coin]]
* [[USD Coin]]
* [[Dai (cryptocurrency)|Dai]]

== References ==
== References ==
{{reflist}}
{{reflist}}

Revision as of 10:19, 17 March 2024

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.

External links

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