FDUSD has quickly become important due to its integration with major exchanges like Binance, where it has been promoted as a core trading pair. This gives it instant liquidity and visibility among global traders. For institutions, FDUSD provides a regulated, transparent option based in Asia, where demand for compliant USD stablecoins is rising. Its backing by First Digital Trust also makes it attractive to users seeking stronger custody and compliance frameworks.

Like other fiat-backed stablecoins, FDUSD is minted when users deposit U.S. Dollars with First Digital Trust. Each token represents one U.S. Dollar and can be redeemed 1:1. FDUSD tokens are issued on multiple blockchains, including Ethereum and BNB Chain, ensuring interoperability with leading ecosystems.

FDUSD is relatively new, which creates risks around long-term adoption and liquidity beyond exchanges like Binance. It also faces regulatory uncertainty since it is based in Hong Kong, where crypto regulations are still evolving. Finally, as a centralized stablecoin, FDUSD depends on the credibility of its issuer and custodians to maintain full backing.