First Digital USD

First Digital USD (FDUSD) is a US dollar stablecoin issued by First Digital Labs, a Hong Kong based company. It launched in 2023 and grew rapidly, largely because it became a primary quote currency on Binance during a period when the exchange was reducing its reliance on other stablecoins.

The token is designed to be fully collateralized by cash and cash equivalents held in reserve, with the stated aim of combining the stability of held reserves with the settlement efficiency of blockchain transfers. It is issued on Ethereum, BNB Chain, Arbitrum, Sui, and TON.

Structure and supply

FDUSD has no fixed maximum supply. Outstanding supply currently sits at roughly 352 million tokens and moves with issuance and redemption. Because a large share of its usage has historically been concentrated on a single exchange, its supply has been unusually sensitive to that venue's promotional and fee policies, expanding sharply when trading incentives favored it and contracting when they changed.

Considerations

FDUSD experienced a brief but notable depeg in 2025 following public claims about the solvency of its reserve custodian, which the issuer disputed and after which the peg recovered. That episode is a useful illustration of a general point about stablecoins: the token's stability depends on the reserve holder and the redemption process, and market confidence in both can move faster than any factual clarification.

Anyone considering FDUSD should look at the current attestation reports, who holds the reserves, and what the redemption terms are, rather than relying on the fact that the token has traded near a dollar historically.