First Digital USD
fdusdRank #119
$0.9974
-0.03% · 24h
24h
-0.03%
7d
+0.01%
30d
-0.02%
1y
-0.11%
First Digital USD chart
First Digital USD (FDUSD) is a fiat-collateralized stablecoin issued by First Digital and designed to hold a one-to-one peg with the US dollar. It matters as a widely used trading and settlement stablecoin, particularly across major exchanges where it serves as a base pair for spot markets.
- — Fiat-backed stablecoin pegged one-to-one to the US dollar
- — Issued by First Digital and backed by off-chain reserves
- — Peg maintained through mint-and-redeem arbitrage
- — Widely used as a trading pair on major centralized exchanges
What is First Digital USD?
First Digital USD is a stablecoin intended to trade at parity with the US dollar, with each token backed by reserves held by the issuer. It rose to prominence as a liquid trading pair on large centralized exchanges, offering users a dollar-denominated asset to move between positions without touching the banking system directly. Unlike algorithmic stablecoins, FDUSD relies on off-chain reserves rather than on-chain collateral or supply algorithms, positioning it as a fiat-backed instrument in the same broad category as USDC and Tether.
How does First Digital USD work?
FDUSD maintains its peg through a reserve-and-redemption model: the issuer holds reserves intended to fully back tokens in circulation, and authorized parties can mint and redeem FDUSD against US dollars. Reserves are meant to consist of cash and short-dated, high-quality instruments, with attestations published to evidence backing. Arbitrage keeps the market price near one dollar, as redemptions and mints let participants profit from deviations. FDUSD is issued as a token across supported blockchains, so transfers settle on-chain while the dollar backing remains off-chain.
What drives the FDUSD price?
As a stablecoin, FDUSD is engineered to stay at one dollar, so its price is driven by confidence in reserves and the reliability of redemptions rather than speculation. Demand instead shows up in circulating supply, which grows when traders want dollar liquidity on exchanges and shrinks during redemptions. The main risk to the peg is any doubt about reserve quality or redemption access, which can trigger temporary discounts. Historically FDUSD has traded near parity, with brief deviations during stress.
Risks to consider
FDUSD carries counterparty and reserve risk: holders depend on the issuer actually holding sufficient, liquid, high-quality assets and honoring redemptions. Attestations are not the same as full audits, and transparency concerns can pressure the peg. Concentration on a small number of exchanges adds liquidity risk, and evolving stablecoin regulation could affect issuance, redemption or availability in certain jurisdictions.
First Digital USD FAQ
Is First Digital USD a good investment?
FDUSD is a stablecoin designed to hold a fixed one-dollar value, so it is not intended to appreciate. Its main risks are reserve quality and redemption reliability rather than price upside. Holders should assess issuer transparency and counterparty risk. This is information, not financial advice.
How does FDUSD stay pegged to the dollar?
FDUSD stays near one dollar through a reserve-backed mint-and-redeem model. Authorized participants can create or redeem tokens against dollars, and arbitrage pushes the market price back toward parity when it drifts.
Is FDUSD safe to hold?
FDUSD's safety depends on the issuer holding sufficient high-quality reserves and honoring redemptions. It carries counterparty and reserve risk, and attestations are not full audits, so users should weigh transparency and regulatory factors.
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Price data by CoinGecko, last refreshed . Figures are indicative, refresh about every 30 minutes, and may lag exchange rates. Read our methodology and disclaimer. Nothing here is financial advice.