By: Zeng Han-Jun, Head of Research, Market Capital Research

Binance, the cryptocurrency exchange, has recently introduced a new stablecoin called First Digital USD (FDUSD) to its platform. Released by First Digital Trust, a digital asset custodian based in Hong Kong, FDUSD has stirred up a significant amount of attention and controversy within the crypto community.

On June 1, First Digital Group announced the launch of FDUSD, a stablecoin pegged to the U.S. dollar. Initially available on the Ethereum and Binance Smart Chain networks, FDUSD aims to provide users with a reliable and efficient means of conducting transactions. Presently, the total circulating supply of FDUSD is approximately 10.11 million, with the vast majority (over 99.9%) stored in Binance wallet addresses.

First Digital is a Trust License holder in Hong Kong, with the Securities and Futures Commission (SFC). As a licensed entity, First Digital is expected to adhere to the regulatory requirements set forth by the SFC. As such, they must prove that FDUSD is backed by adequate assets. Also, as an HK Trust, they should maintain full reserves and must not invest those assets. The implications of these actions are yet to be determined.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.