Everything to know about First Digital’s USD-backed stablecoin

TL;DR Breakdown

  • First Digital has launched a USD-backed stablecoin named FDUSD.
  • The new stablecoin aims to reduce cryptocurrency market volatility and make transactions more efficient.
  • FDUSD is issued by the subsidiary FD121 Limited, and its value is pegged to the U.S. dollar at a 1:1 ratio.
  • FDUSD reserves are held in segregated accounts, and are comprised of cash or highly liquid assets, ensuring their redeemability.

The Asian financial technology firm First Digital has unveiled its latest innovative venture, a USD-pegged stablecoin coined First Digital USD (FDUSD).

This pivotal move broadens the scope of stablecoins currently available on the market, providing an exciting alternative for individuals seeking increased stability amid the fluctuating financial environment.

Revolutionary aspirations: First Digital’s stablecoin

First Digital’s commitment to this project stems from its desire to mitigate cryptocurrency market volatility. The FDUSD coin, birthed under the subsidiary, FD121 Limited, is intended to offer users a more secure and efficient means of conducting transactions.

This pioneering crypto instrument ensures lower transaction costs and eliminates the need for intermediaries by enabling financial contracts and escrow services.

The FDUSD is underpinned by the principle of transparency, with its value tethered to the U.S dollar at a 1:1 ratio. This implies that every FDUSD token in circulation is equivalently backed by either one U.S. dollar or assets of comparable fair value in regulated Asian financial institutions’ accounts.

This structure guarantees the reliability of FDUSD tokens, offering users the confidence of redeeming their stablecoins as desired.

Security and compliance

First Digital’s dedication to regulatory adherence is evident in the careful handling of FDUSD reserves. All reserves are kept in separate accounts within the trust company, safeguarding against intermingling with other assets of the company.

Furthermore, only cash or highly liquid assets are deemed suitable for these accounts, ensuring that FDUSD holders can redeem their tokens with the assurance of the 1:1 backing.

Notably, the redeemability of FDUSD tokens underscores another aspect of First Digital’s commitment to transparency and security. As FDUSD tokens are backed by high-quality reserves – cash or cash equivalents – users can redeem their tokens for U.S. dollars.

This feature adds an extra layer of safety to the reserves and reinforces First Digital’s pledge to provide users with a stable and secure crypto instrument.

Vincent Chok, the CEO of First Digital, heralded this achievement as a “significant milestone” for the company. He emphasized that FDUSD’s launch is a testament to First Digital’s mission to create a secure and efficient digital currency.

The company aims to inspire confidence and trust in this innovative blockchain technology, particularly at a time when stability in the traditional financial system is wavering.

In their pursuit of setting new standards of legitimacy within the crypto space, First Digital plans to work closely with local and global regulatory authorities.

Through these collaborations, they aim to ensure comprehensive compliance with applicable laws and regulations. By fostering such relationships, First Digital looks forward to shaping the evolution of regulatory regimes within the digital currency landscape.

First Digital’s innovative solution is just the beginning. With their new stablecoin underpinned by state-of-the-art technology, First Digital hopes to provide a safe, reliable alternative to traditional currencies, ultimately transforming the world of finance.

As a harbinger of future advancements, the launch of FDUSD signifies First Digital’s ongoing commitment to bridging the gap between the traditional and digital financial worlds. Their eyes are set on the future, and it’s looking brighter than ever.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Everything to know about First Digital’s USD-backed stablecoin

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月5日 05:51
Next 2023年6月5日 08:00

Related articles

  • Polkadot price analysis: DOT continues horizontally in pursuit of $6 resistance

    TL;DR Breakdown . Polkadot price has remained bearish since May 6 decline . Price remains in horizontal trend and is set to remain so . DOT resistance set at $6 Polkadot price analysis shows price in continued bearish trend, after price lowered to $5.23 over the past 24 hours. DOT has remained in a sideways trend on the daily chart since May 8, when price was at $5.6. Since then, the token has largely oscillated around the $5.5 zone, above the $5 support and in pursuit of resistance at $6. Price at the time of writing for Polkadot is set at $5.31, with trading volume from the past 24 hours rising around 8 percent, and market cap set at $6,959,869,885. The larger cryptocurrency market showed a mixed set of results across the board, as Bitcoin moved down to $26,800 with a minor decline, with Ethereum pushing up to the $1,800 mark. Among leading Altcoins, Ripple moved up to $0.45, with Cardano also rising 2 percent to move as high as $0.36. Meanwhile, Dogecoin made a 1 percent jump to move…

    Article 2023年5月24日
  • German regulator BaFin warns consumers about unlicensed financial services on Bitcoin Bank Breaker

    TL;DR Breakdown BaFin investigates Bitcoin Bank Breaker for suspected illegal activities in the cryptocurrency exchange. BaFin warned German consumers to be cautious when dealing with the platform due to a lack of company information. Allegations of unlicensed financial services offered by Bitcoin Bank Breaker under BaFin scrutiny. Description Germany’s Federal Financial Supervisory Authority, BaFin, has initiated an investigation into cryptocurrency exchange Bitcoin Bank Breaker, citing various warning signs that raise suspicions of illegal activities. The regulator expresses concerns over the platform’s failure to provide essential company information on its website, such as a full company name, legal form, or place of business. Consequently, … Read more Germany’s Federal Financial Supervisory Authority, BaFin, has initiated an investigation into cryptocurrency exchange Bitcoin Bank Breaker, citing various warning signs that raise suspicions of illegal activities. The regulator expresses concerns over the platform’s failure to provide essential company information on its website, such as a full company name, legal form, or place of business. Consequently, BaFin has warned German consumers, urging caution while interacting with the platform. BaFin alleges that Bitcoin Bank Breaker’s developers…

    Article 2023年8月1日
  • Brink receives $5 million donation from Jack Dorsey’s Start Small initiative to support Bitcoin developers

    TL;DR Breakdown Jack Dorsey’s Start Small initiative donates $5 million to Brink, a nonprofit supporting Bitcoin developers. The funds will be distributed over five years, with $1 million given annually to fuel the growth of the Bitcoin ecosystem. Brink plays a vital role in funding and supporting open-source Bitcoin developers, contributing to improving the technology. In another move to fuel the growth of the Bitcoin ecosystem, tech mogul Jack Dorsey has pledged a $5 million donation to Brink, a nonprofit organization supporting open-source developers in the Bitcoin space. The donation will be spread over five years, with $1 million being contributed annually. This contribution is part of Dorsey’s philanthropic initiative, Start Small, which he established in 2020 to provide relief during the COVID-19 pandemic. Honored to receive a very generous $5,000,000 pledge to our developer funding efforts from @jack and #startsmall Brink will receive $1,000,000 per year for the next 5 years. Thank you for supporting #bitcoin developers! — Brink (@bitcoinbrink) June 14, 2023 The funds provided by Dorsey will play a crucial role in supporting core developers working on…

    Article 2023年6月19日
  • Ethereum Client Nimbus Releases Pruning Update Following Vitalik Buterin’s Roadmap Revision

    TL;DR Breakdown Ethereum client Nimbus has released the v23.5.1 update, focusing on incremental pruning and improved compatibility, in response to Vitalik Buterin’s roadmap revision. Pruning allows nodes to save disk space by erasing older data, promoting scalability and decentralization. The update also includes other enhancements and prepares for the upcoming Capella hard fork in the Gnosis network. Ethereum consensus layer client Nimbus has announced the release of the v23.5.1 update, mainly focusing on improving compatibility and introducing support for incremental pruning in response to the recent changes made to the Ethereum Roadmap by co-founder Vitalik Buterin. This medium-urgency update targets validators, clients, and node operators, aiming to enhance the overall performance of the ETH network. Pruning is a process that involves erasing older data to optimize disk space utilization. By implementing incremental pruning, Ethereum clients can efficiently manage their storage needs while still maintaining the necessary historical data required for network operations. Although the –history: prune option is not enabled by default in the current release, Nimbus encourages users to test it in non-production environments, as it will be enabled…

    Article 2023年5月22日
  • Coinbase vs. SEC: Crypto’s fate hangs in the balance – Ripple’s escape route uncovered

    TL;DR Breakdown Attorney John Deaton, who is representing a substantial number of XRP token holders, has outlined the possible courses of action that the two parties might take should they decide to settle their legal dispute. Deaton’s analysis is shaped by several critical factors, including the outcome of the ongoing legal battle between Coinbase and the SEC. If the motion to dismiss in the Coinbase case is approved, it would significantly limit the SEC’s ability to pursue an appeal.  Description Amidst ongoing speculation surrounding a potential resolution between Ripple and the United States Securities and Exchange Commission (SEC), attorney John Deaton, who is representing a substantial number of XRP token holders, has outlined the possible courses of action that the two parties might take should they decide to settle their legal dispute which is shaped … Read more Amidst ongoing speculation surrounding a potential resolution between Ripple and the United States Securities and Exchange Commission (SEC), attorney John Deaton, who is representing a substantial number of XRP token holders, has outlined the possible courses of action that the two parties…

    Article 2023年9月3日
TOP