FDUSD Interview, a stablecoin in Hong Kong
Crypto Roundup
“Hello, today we're going to speak about the stablecoin FDUSD. What can you say about that stablecoin?”
Expert
Absolutely, let’s dive in. So, FDUSD is a stablecoin that’s really positioning itself as a regulated, transparent alternative with a strong foothold in the Asian market. It’s backed primarily by things like U.S. Treasury bills and bank deposits, and they do monthly attestations to show that it’s fully backed. The idea is to provide a stablecoin that’s both multi-chain and compliant with Hong Kong’s regulations, and it’s grown quite a bit in market cap. Of course, it has the usual stablecoin risks and
Crypto Roundup
“How would you say it compares with other stablecoins, such as the USDC and Tether?”
Expert
Sure, so when you stack FDUSD up against something like USDC or Tether, a few differences stand out. USDC is kind of the gold standard for transparency in the U.S. market. It’s heavily regulated, and its reserves are frequently audited by U.S. firms, so it’s got that strong U.S. compliance angle. Tether, on the other hand, is more globally used and super liquid but has historically had a bit of controversy around transparency and audits.
FDUSD is kind of carving out its own niche by leaning into the Hong Kong regulatory environment and being multi-chain from the get-go. So it’s kind of saying, “Hey, if you want something that’s got a strong regulatory base in Asia and is easily usable across multiple blockchains, that’s us.” But of course, it’s still newer and not as entrenched as USDC or Tether, so it’s got some ground to cover in terms of trust and adoption.
Crypto Roundup
“What makes FD-USD different? Why would people want this over the others?”
Expert
Yeah, great question! I think what sets FDUSD apart is mostly its regulatory positioning and its focus on the Asian market. It's got that Hong Kong regulatory angle, which can be appealing for users or institutions that want a stablecoin with a solid legal framework in that region.
People might choose FDUSD if they're looking for something that’s natively multi-chain and integrated into several blockchain ecosystems right out of the gate. Also, the monthly attestations and the focus on high-quality reserves like U.S. Treasuries can be a selling point for people who are looking for a stablecoin that’s trying to be extra transparent and compliant. So it's really about that regional regulatory niche and the multi-chain flexibility.
Crypto Roundup
“And what are the actual reserves for this new coin here, the FD-USD? Is that the reserves all in Treasury Bills?”
Expert
Yeah, so the reserves for FDUSD aren’t just all in Treasury bills, though that is a big part of it. They’re typically a mix of high-quality, short-term assets. So along with U.S. Treasury bills, they’ve got things like bank deposits and overnight reverse repurchase agreements. It’s all meant to be pretty liquid and relatively safe, and they do monthly attestations to show that these reserves are fully backing the stablecoin one-to-one. So it’s a combination, but Treasuries are definitely a significant part of the mix.
Crypto Roundup
“And what company is behind the FDUSD?”
Expert
Absolutely, so the company behind FDUSD is called First Digital Trust. They’re based in Hong Kong, and they’re basically a financial services firm that’s focusing on digital asset custody and trust solutions. So they’re the ones issuing and managing FDUSD. They really emphasize that Hong Kong regulatory framework and try to build trust through that kind of transparency. So in short, First Digital Trust is the company at the helm of it all.
Crypto Roundup
“Is that the same as FIRST Digital Labs?”
Expert
Yeah, that’s a good distinction to make. So First Digital Trust and First Digital Labs are related but not exactly the same entity. First Digital Labs is essentially the technology development arm that worked on the FDUSD project, while First Digital Trust is more the financial services and fiduciary side that’s actually issuing and overseeing the stablecoin.
So you can think of First Digital Labs as the team that built the tech behind FDUSD, and First Digital Trust as the entity that’s actually running the financial and regulatory operations. But yeah, they’re definitely connected and part of the same overall group.