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What is the background of Binance's newly launched FDUSD stablecoin?

2023-07-26 14:12

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Binance announced in a statement that it will launch a new stablecoin, First Digital USD (FDUSD), on July 26 at 16:00. The stablecoin will be available for trading with new spot trading pairs. Stablecoins have become an important asset type in the crypto industry, and have been making headlines this year. Binance's own stablecoin, BUSD, has been regulated, USDC has been abandoned, and TUSD has often been embroiled in controversy. What is FDUSD all about?

About the issuer First Digital

First Digital USD (FDUSD) is issued by FD121 Limited (branded as First Digital Labs). Its parent company, First Digital Trust, is a qualified custodian and trust company headquartered in Hong Kong. On June 1st of this year, it officially announced the launch of FDUSD, a stablecoin pegged to the US dollar, which is regulated in Asia.

According to data, First Digital completed its first round of financing in 2020 and has completed a total of three rounds of financing, raising a total of 25.15 million US dollars. Investors include Nogle and Kenetic Capital.

Data source: Qichacha

First Digital stated during the launch of FDUSD that as a company registered under the Hong Kong Trust Ordinance, they must store all FDUSD reserves in an independent account held by a regulated financial institution in Asia. This will prevent the FDUSD reserves from being mixed with other assets of First Digital Trust Limited.

It is worth noting that Binance founder CZ also tweeted about FDUSD at the time of its launch.

Public information shows that the CEO of First Digital is Vincent Chok. According to information on LinkedIn, in addition to serving as CEO of First Digital, Vincent Chok has also been CEO of First Digital's parent company, Legacy Trust Company Limited, since 2015. Gunnar Jaerv, the current COO of First Digital, previously held positions as head of proprietary trust and head of digital assets at Legacy Trust Company Limited, where he worked for 7 years.

First Digital CEO Vincent Chok

Vincent Chok work experience, source: Linkedin

View Vincent Chok's Twitter homepage. BlockBeats discovered that Vincent is also a BAYC holder and quickly found his Ethereum address based on his NFT avatar: 0x39E298800356ca0b973A50bF34A977D2B01d4b5c.

Source: OpenSea

Source: DeBank

There are currently no other assets in the address except for 2 NFTs and several tens of dollars worth of cryptocurrency.

White Paper Information

According to the information in the white paper, FDUSD issued by First Digital is fully backed by 1:1 US dollar assets, which are held by First DigitalTrust Limited. Users can view the transparency report of FDUSD on the official website. Currently, the company has released independent audit reports and reserve account reports for July 2023.

The issuance of FDUSD aims to provide users with a reliable digital currency, reduce the impact of cryptocurrency market volatility, improve efficiency by lowering transaction costs, and provide faster and more secure transactions. FDUSD is a programmable stablecoin that can execute financial contracts, custody services, and insurance without intermediaries, and is supported by high-quality reserves (cash and cash equivalents).

According to blockchain browser data, First Digital has currently issued a total of 10,110,414 FDUSD on both Ethereum and BNB Chain. The project contract has been audited by PeckShield.

FDUSD Ethereum contract address

FDUSD BNB Chain Contract Address

FDUSD has what advantages

Transferable

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

可赎回

translates to

Redeemable

in English.

FDUSD is backed by high-quality reserve assets (cash and cash equivalents), which enables holders to exchange their FDUSD tokens for an equivalent amount of US dollars. This feature provides security for the reserve of stablecoins, and users can trust that FDUSD will always be supported at a 1:1 ratio.

可编程

translates to

Programmable

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

Low cost

As a blockchain-based cryptocurrency, FDUSD has a significant advantage in providing cost-effective and low-cost transactions. Unlike traditional financial transactions (which usually incur high fees), blockchain-based transactions typically involve lower costs. This cost-effectiveness makes FDUSD an attractive economic choice for users.