First Digital USD

FDUSD launched in 2023 through the First Digital group. The current legal counterparty is FD121 (BVI) Limited: on 2025-08-01, the terms, duties and rights of the former Hong Kong issuer were novated to the BVI company. The token name stayed the same while the entity owing eligible clients the redemption performance changed.

First Digital Trust Limited is the named custodian, not the token issuer. The distinction matters because custody, issuance and exchange distribution create different obligations. The terms exclude individuals or entities in the United States, and anyone acting for their benefit or account, from FD121's mint and redemption services; broad access to a token on-chain does not erase that contractual perimeter.

FD121 says each FDUSD is backed by one dollar or equivalent reserve assets held with qualified custodians. The same terms say the reserve is beneficially owned by FD121. A holder receives neither a trust interest in the cash and securities nor the income they earn, and FDUSD itself pays no yield.

The one-dollar promise is therefore a service with conditions. A client must be eligible, register an account, remain in good standing and satisfy compliance checks. A wallet holder who cannot or does not open that account is not contractually entitled to sell FDUSD to FD121, even if an exchange labels the token one dollar.

At 2026-07-31, the transparency page reported $350.156 million of tokens issued and circulating against $351.63 million of assets: 75.88% U.S. Treasury bills, 20.42% cash and 3.70% fixed deposits. It is a dated reserve snapshot, not proof that every wallet can execute a same-day bank-dollar exit; the terms permit delay or suspension under specified liquidity, legal and emergency conditions.

The official address list spans Ethereum, BNB Chain, TON, Sui, Solana and Arbitrum. These are separate technical surfaces under one issuer framework. A user must verify the chain and address because a token with the same name at another address may not be FD121's liability.

Ethereum's official address is a TransparentUpgradeableProxy. Its verified implementation gives an owner authority to mint, burn, freeze and unfreeze addresses, and pause or unpause token operations; the proxy administrator can upgrade the implementation. The code calls the address control freeze, not blacklist. It can block future movement but does not turn a finalized transfer into a reversible bank entry.

In 2023 Binance added promotions and later offered BUSD users conversion into FDUSD while winding down BUSD support. That policy helped put FDUSD pairs and inventory in front of many more users than the issuer's onboarding desk could serve.

The exchange relationship changes distribution, not legal identity. Binance is not FD121, does not custody the published reserves and is not the direct-redemption obligor in FDUSD's terms. Exchange spreads, withdrawal rules and promotions can change without amending the reserve contract.

On 2025-04-02, allegations concerning First Digital Trust triggered a sharp confidence shock around FDUSD. First Digital denied that the dispute involved FDUSD and said it concerned TUSD. That denial is a party statement, not an adjudication of the wider allegations, so the dossier does not convert either side's claim into a settled finding.

Aave participants separately examined FDUSD exposure and guardian action. Their response showed how another protocol must price the token's liquidity and counterparty uncertainty even though it cannot inspect every bank account or make FD121 redeem an unapproved wallet.

The event exposed the peg's access ladder. An approved client may attempt direct redemption under the terms; an ordinary holder sells to a market maker or exchange; an on-chain protocol manages collateral liquidity. A reserve report addresses asset coverage at a date. It does not collapse those three routes into one enforceable right.