# $FDUSD (First Digital USD) is a stablecoin developed by First Digital, a regulated financial institution, with the aim of offering a stable, secure digital payment method with parity to the US dollar (USD).

Main features of FDUSD:

1. US Dollar Backing

• 1 FDUSD = 1 USD: Each unit of FDUSD is backed* by a reserve of US dollars or highly liquid, low-risk assets. This ensures that the currency maintains a fixed and stable value.

2. Regulated Emission

• Regulated Financial Institution: First Digital, the issuer of FDUSD, is a highly regulated financial institution, which gives users greater confidence. The company follows financial standards and regulations, including those related to KYC* (Know Your Customer) and AML* (Anti-Money Laundering), helping to ensure compliance with the law and increasing transparency in transactions.

3. Security and Transparency

• Reserve audit: The reserves that guarantee FDUSD are regularly audited by independent companies to ensure that the stablecoin is 100% backed. This provides greater security and confidence for investors, knowing that there is real backing in liquid and safe assets for each unit issued.

• Transparency: First Digital is committed to providing periodic reports on the composition of its reserves, allowing users to monitor the solidity and sustainability of the currency's backing.

4. Ease and Efficiency in Transactions

• Low cost and speed of transactions: FDUSD enables fast and low cost transactions within the crypto ecosystem. It is ideal for international payments, remittances and asset settlement on exchanges or DeFi platforms, where speed and stability are essential.

• Acceptance on multiple platforms: FDUSD is accepted on multiple exchanges and decentralized finance (DeFi) platforms, making it a versatile option for users seeking security and efficiency in their digital transactions.

5. Institutional Adoption and Strategic Partnerships

• Partnerships with major crypto platforms: The FDUSD stablecoin aims to facilitate the integration of traditional finance with the crypto world. Additionally, with the backing of Prescient Assurance, it has the potential to attract adoption from institutional investors seeking security, stability and regulatory compliance.

• Integration with DeFi platforms: The stablecoin is ideal for use in DeFi protocols, providing a stable and secure medium for operations such as lending, collateral lending, staking*, yield farming* and more.

6. Market Resilience

• Volatility protection: Like any other stablecoin, FDUSD is a solution to reduce volatility in the cryptocurrency market. During periods of high market volatility, users can convert volatile cryptocurrencies to FDUSD, keeping the value of their holdings stable without the risk of major losses.

7. Global Adoption

• Usage in multiple jurisdictions: Although FDUSD originated and is regulated in the United States, it was designed to be used globally. The fact that it is a stablecoin pegged to the dollar facilitates its adoption in international markets, where the dollar is an important reference for transactions and stores of value.

8. Blockchain Compatibility

• FDUSD is designed to be used across multiple blockchains and cryptocurrency platforms, allowing it to be transferred quickly between different systems and platforms without significant costs or delays. The flexibility of use across smart contracts and decentralized blockchain platforms is an added advantage.

Meaning of words in (*)

Backed

The term “backed” means that the currency is backed by real stores of value, such as US dollars or other low-risk financial assets.

KYC

Acronym for “Know Your Customer”, an identity verification process used by financial institutions, cryptocurrency exchanges and other platforms to ensure their users are legitimate and in compliance with regulations.

AML

Acronym for “Anti-Money Laundering”, which means “Prevention of Money Laundering”. It is a set of regulations, laws and practices adopted by financial institutions and companies to identify, prevent and combat money laundering, which is the process of disguising the illegal origins of funds, making them appear legitimate.

Staking

The process of locking or depositing a certain amount of cryptocurrency into a blockchain network to help ensure its security, validate transactions, and in return receive rewards.


Yield Farming

It’s a popular concept within DeFi that allows users to earn rewards (usually in the form of cryptocurrencies) by providing liquidity to decentralized protocols or platforms. In simple terms, yield farming involves lending or depositing cryptocurrencies into liquidity pools in exchange for rewards, which can be more cryptocurrencies or governance tokens.