First Digital USD
Crypto Overview
Purpose and Utility
First Digital USD (FDUSD) is a stablecoin issued by First Digital Limited, a Hong Kong-based company. It is designed to maintain a 1:1 peg with the US Dollar. The stablecoin is fully backed by cash and cash equivalent reserves.
Business Model
FDUSD operates as a fiat-collateralized stablecoin, where each token is backed by actual USD reserves held in regulated financial institutions. The stablecoin facilitates trading pairs on cryptocurrency exchanges and serves as a stable medium of exchange for crypto transactions. First Digital Limited generates revenue through transaction fees and the management of reserve assets.
Real-World Adoption
FDUSD has gained significant traction since its launch, particularly on the Binance exchange where it serves as a major trading pair. The stablecoin has achieved substantial trading volumes and has been integrated into various DeFi protocols and exchanges.
Platform Development
First Digital maintains regular audits of their reserves through third-party auditors, ensuring transparency in their backing. The technical infrastructure appears robust, with regular updates and maintenance to ensure stability and security.
Token Distribution and Governance
As a stablecoin, FDUSD's supply is directly tied to the amount of USD held in reserves. The token distribution model is straightforward - new tokens are minted when USD is deposited, and tokens are burned when redeemed for USD.
Crypto Impact
To assign a comfort level investing in First Digital USD from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to First Digital USD.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.