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Introduction
FDUSD is a stablecoin backed 1:1 by the US dollar, launched by First Digital Group in 2023 to provide a safe and fast alternative in the volatile cryptocurrency market, competing with coins like USDT and USDC.
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## Key features
- Full guarantee: Backed by cash reserves and subject to regular audits by companies like Moore Hong Kong.
- Fast and low cost: Its transactions take seconds with fees not exceeding 0.1%.
- Wide compatibility: Available on Binance Smart Chain and **Ethereum**, and listed on major platforms like Binance and **OKX**.
- Regulatory compliance: Managed by First Digital Trust, which is regulated by the Hong Kong Securities and Futures Commission (SFC).
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## Its main uses
1. Profit protection: Converting digital assets to FDUSD to avoid market volatility.
2. Profit through DeFi: Using it on decentralized lending platforms (like Aave) to earn returns of up to 8%.
3. Global payments: Sending money internationally at a lower cost than traditional remittances.
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## Challenges
- Fierce competition from established stablecoins (like USDT which dominates 70% of the market).
- Doubts about full regulatory compliance amid tightening government oversight.
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## Expected future
With Binance's support (as part of its Launchpool program), its market value could reach 5 billion dollars by 2025, especially in Asia where the developing company is concentrated.
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Source: [First Digital Trust](https://firstdigitaltrust.com/)
