Since the content you provided is already in Chinese, I will assume that you are asking about the background of FDUSD, a stablecoin newly launched by Binance. Here is the translated version: "What's the story behind FDUSD, the new player in the stablecoi
Binance announced in a statement that it will launch a new stablecoin called First Digital USD+ (FDUSD) on July 26th at 16:00. The exchange will also open trading for new spot trading pairs. Stablecoins, which are an important asset type in the industry and in crypto, have been making headlines this year. Binance's own stablecoin, BUSD, has faced regulatory scrutiny, USDC has been abandoned, and TUSD has often faced controversies. So, what is FDUSD all about?
About First Digital, the Issuer
The issuer of First Digital USD (FDUSD) is FD 121 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 and regulated in Asia.
According to data, First Digital completed its earliest round of financing in 2020 and has since completed three rounds with a total funding of $25.15 million. Investors include Nogle and Kenetic Capital.
Source: Qichacha
When FDUSD was launched, First Digital stated that, as a company registered under the Hong Kong Trust Ordinance, they must hold all FDUSD reserves in a separate account at regulated financial institutions in Asia to prevent commingling with other assets of First Digital Trust Limited.
It's worth noting that Binance founder CZ also tweeted about the launch of FDUSD at the same time.
Public information shows that the CEO of First Digital is Vincent Chok. According to information from Linkedin, besides serving as CEO at First Digital, Vincent Chok has also been CEO at First Digital's parent company, Legacy Trust Company Limited, since 2015. Gunnar Jaerv, the current COO of First Digital, previously served as the head of the proprietary brand trust and the head of the digital assets department at Legacy Trust Company Limited, where he worked for 7 years.
First Digital CEO Vincent Chok
Vincent Chok's employment history, source: Linkedin
When checking Vincent Chok's Twitter profile, BlockBeats discovered that Vincent is also a holder of BAYC and promptly found the 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 a few tens of dollars in cryptocurrency.
Whitepaper Information
According to the whitepaper information, FDUSD issued by First Digital is fully backed by a 1:1 ratio of US dollar assets, which are held by First DigitalTrust Limited. Users can view transparency reports for FDUSD on the official website. Independent audit reports and reserve account reports for July 2023 have been released by the official.
FDUSD's issuance 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, 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 explorer data, First Digital has currently issued a total of 10,110,414 FDUSD on both Ethereum and BNB Chain. The project contract is audited by PeckShield.
FDUSD Ethereum contract address
FDUSD BNB Chain contract address
Advantages of FDUSD
Transferable
As an interchangeable digital currency, FDUSD supports frictionless and seamless transactions, making it a convenient choice for various use cases.
Redeemable
FDUSD is backed by high-quality reserves (cash and cash equivalents), giving holders the ability to exchange their FDUSD tokens for an equivalent amount of USD. This feature provides security for the stablecoin's reserves, and users can trust that FDUSD will always have 1:1 backing.
Programmable
FDUSD has programmability that allows for creating smart contracts, hosting services, and insurance arrangements without intermediaries. This programmability gives users greater control over their financial transactions while reducing transaction costs and improving speed and accuracy.
Low Fees
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.
Operates on Decentralized Networks
As a stablecoin based on blockchain technology, FDUSD operates on decentralized networks distributed across multiple nodes. This enhances transparency, security, and resilience as there is no single entity that fully controls the network.
Isolated from Custodian Bankruptcy
FDUSD's statutory reserves are held by the designated custodian First Digital Trust Limited in accounts that are segregated from the custodian's operational accounts. This means that even in the highly unlikely event of custodian bankruptcy, the reserves backing FDUSD (within the scope held by or on behalf of the custodian) remain isolated and protected from the custodian's other assets, ensuring the stability and security of the stablecoin.
Conclusion
There is more information to follow for this stablecoin issuer based in Hong Kong. As the birthplace of the world's largest stablecoin USDT, Hong Kong, which already had a crypto tradition, has gained considerable attention under the official support this year. Even Binance has tried to find contacts to engage with Hong Kong officials. This seems to be one of the reasons why Binance chose FDUSD. But the most important aspect of stablecoins is stability and security. With the current issuance scale of 10 million US dollars, FDUSD still has a long way to go.
