Ethereum

Stable Coin

Bitcoin

when

<ul class="list-ic vertical">
 <li>1 <a>Minimal costs are a standout feature of FDUSD, typically ranging from 0.1% to 1%.</a></li>
 <li>2 <a>First Digital’s programmability allows for the implementation of smart contracts.</a></li>
</ul>
Cryptocurrencies like Bitcoin and Ethereum don’t require intermediaries to send payments, but their prices are unpredictable and fluctuate, making them difficult for everyday use. People need to know the worth of their money for security and livelihood.
<h2 class="wp-block-heading" id="strong-fdusd-a-new-stable-coin-strong">FDUSD: A new Stable Coin</h2>
FDUSD is a stablecoin that is issued by FD121 Limited, which is a subsidiary of First Digital Limited, a Hong Kong-based financial firm. This stablecoin was introduced in June 2023 and is backed by one U.S. dollar or an asset of equivalent value held in reserves with First Digital Trust Limited.&nbsp;
The issuer publishes an “attestation of reserve” report that is audited by independent auditors to demonstrate that the supply of First Digital is fully supported. It was initially issued on the Ethereum and BNB Chain networks but plans to be issued on other blockchains in the future. It’s core principles are cost reduction, stability, speed, and security. These pillars are essential to its operation.
<h3 class="wp-block-heading" id="strong-features-of-fdusd-strong">Features of FDUSD</h3>
Minimal costs are a standout feature of FDUSD, facilitating cost-effective transactions with fees typically ranging from 0.1% to 1% on specific exchanges. However, it’s important to note that each exchange establishes its own fee structure. In contrast, traditional finance tends to enforce substantial transaction fees, often reaching as high as 2% to 5%. Overall, transacting with it offers much better cost savings.
Stability is perhaps the most significant reason people use stablecoins. By hedging against price dips, traders commonly convert their assets into stablecoins when anticipating a bear market to preserve the value of their holdings.
FDUSD’s transaction speed and efficiency are achieved through state-of-the-art technology. Merchants can seamlessly accept its payments, with funds deposited into their accounts within seconds. Traders can swiftly engage in cryptocurrency transactions on exchanges using it, completing the process within seconds. Users can conveniently send First Digital to recipients worldwide in a matter of seconds.
<a href="https://www.thecoinrepublic.com/2024/01/29/amp-token-working-uses-rewards-and-distribution-of-amp/" target="_blank" rel="noopener noreferrer nofollow">FDUSD</a>‘s programmability allows for the implementation of smart contracts and automated functions within the blockchain ecosystem. Smart contracts can automate tasks on the blockchain, such as escrow services, decentralized exchanges, and various financial agreements.&nbsp;
Users can set conditions for releasing funds, automate recurring payments, and develop intricate financial products, while traditional payment systems often involve manual intervention and various intermediaries for complex transactions. FDUSD’s programmability reduces the need for middlemen and streamlines the transaction process, leading to faster and more cost-effective operations.
First Digital ensures the security of assets by holding them in fully segregated bankruptcy-remote structures. <a href="https://www.thecoinrepublic.com/2024/01/29/amp-token-working-uses-rewards-and-distribution-of-amp/" target="_blank" rel="noopener noreferrer nofollow">First Digital Trust Limited</a> plays a vital role in asset protection and regulatory compliance.&nbsp;
Users can redeem their tokens to fiat currency at any time, providing great trust and flexibility. That sets FDUSD apart from many digital payment systems that have lengthy processing times and limited fund redemption.
<h3 class="wp-block-heading" id="strong-summary-strong">Summary</h3>
FDUSD is a stablecoin backed by one U.S. dollar or an asset of equivalent value. The coin’s assets are held in fully segregated holding structures, ensuring its stability. Unlike volatile cryptocurrencies like Bitcoin and Ether.

First Digital: A Beginners Guide to FDUSD, Uses, History, and More

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Thecoinrepublic.com

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