FDUSD, a stablecoin introduced in June 2023, is issued by FD121 Limited, a subsidiary of the Hong Kong-based financial firm First Digital Limited. The stablecoin is designed to be backed by one U.S. dollar or an asset of equivalent value, securely held in reserves by its appointed custodian, First Digital Trust Limited.

Operating as a registered trust company under Hong Kong law, First Digital Trust Limited ensures the safekeeping of all FDUSD reserves in segregated accounts. This segregation prevents any mingling of FDUSD reserves with other assets within the firm. The reserves, mandated to be in cash or highly liquid assets, aim to maintain a 1:1 backing of the FDUSD, as asserted by the firm.

To further ensure transparency, the issuer of FDUSD releases an "attestation of reserve" report, subject to independent audit. This report provides evidence that the circulating supply of FDUSD is fully supported by an equivalent value of cash or cash equivalents held in custody.

Upon its launch, FDUSD was issued on the Ethereum and BNB Chain networks, with plans for future issuance on additional blockchains. In a market already populated with stablecoins, FDUSD distinguishes itself by offering diverse instruments for users seeking stablecoin-based diversification.