We are thrilled to share that First Digital USD (FDUSD) is now listed on Coinhako!
What are First Digital and FDUSD?
Established in 2017 as part of Legacy Trust Company, First Digital Group aims to protect, progress, and introduce new ideas to assist customers in navigating digital assets and accessing reliable next-generation financial services. The company's goal is to enable clients to leverage the opportunities of a digital-centric future by merging digital asset innovation with its solid foundation in trust, custody, and asset management.
FD121 Limited, the issuer of the FDUSD stablecoin, is the innovation subsidiary of the First Digital Group that focuses on cutting-edge research and development, specializing in the innovation and advancement of digital assets. First launched in June 2023, FDUSD represents a digital currency that not only ensures secure and efficient transactions but also operates seamlessly on decentralized networks, offering users a level of transparency and reliability previously unseen in traditional financial systems.
There is a max supply of 3,524,419,342 FDUSD, and tokens are intended to be redeemable 1:1 for U.S. dollars. FDUSD is fully backed by cash and cash equivalent assets held in fully segregated bankruptcy-remote holding structures. It is available on Ethereum and BNB Chain with planned support for other blockchains in the future.
How does FDUSD work?
Each FDUSD issued is intended to be backed in a 1:1 ratio with the equivalent amount of corresponding fiat currency held in reserves with First Digital Trust Limited, the appointed custodian. FDUSD is issued on the Ethereum and BNB Chain, which provides consensus confirmation of transactions using a Proof-of-Stake (POS) or Proof-of-Staked-Authority (POA) consensus. By leveraging the ecosystem of these blockchains, users can incorporate FDUSD into smart contracts.
All FDUSD in issuance and transactions can be monitored as it utilizes established public ledgers — this means users can freely look up the coins redeemed and issued.
Why does FDUSD stand out?
There are several advantages to using FDUSD:
Transferable: As a fungible form of digital currency, FDUSD allows for smooth and streamlined transactions
Redeemable: FDUSD is back by cash and cash equivalents, enabling users to redeem their tokens for USD.
Programmable: FDUSD allows the creation of smart contracts, escrow services and insurance arrangements without intermediaries.
Separation from custodian’s Assets: The reserves of FDUSD are held in an account segregated from their custodian’s operational account, ensuring stability and security.
What is a stablecoin?
Stablecoins are a popular form of cryptocurrency that aims to address the volatility issues associated with traditional cryptocurrencies like Bitcoin and Ethereum. They are designed to maintain a stable value, usually pegged to a fiat currency such as the US dollar or the euro.
The stability and security are backed by their value with reserves of fiat currency or other assets. This backing is often held in a transparent and audited manner, ensuring that each unit of stablecoin is backed by an equivalent amount of the underlying asset.
Stablecoins can be used for everyday transactions or as a store of value that allows users to protect their wealth from inflation or economic instability. They play an essential role in bridging the gap between traditional finance and decentralized technologies. They represent stability, transparency, and increased accessibility in the world of digital currencies.
What can you do with FDUSD on Coinhako?
FDUSD will be available for users to trade across all swap pairs on Coinhako.
To gain access to any of these trading pairs, you can either:
- Fund your SGD wallet on Coinhako instantly with PayNow (or any other supported payment method)
- Purchase FDUSD instantly with Visa / Mastercard
Risk Warning on Digital Payment Token Services
Hako Technology Pte Ltd ("Coinhako") is licensed to provide digital payment token services under the Payment Services Act 2019 (No. 2 of 2019).
The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of a digital payment token ("DPT") service provider.
Before you pay your DPT service provider any money or DPT, you should be aware of the following.
- Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
- You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
- You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
- You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
Visit: Coinhako.com/risk-disclosure for more information.