First Digital Labs

First Digital Labs is a Hong Kong-based stablecoin issuer operating as a subsidiary of First Digital Group, a digital asset financial services company with roots stretching back to Legacy Trust Company, founded in 1992. The firm launched First Digital USD (FDUSD) in June 2023, initially on Ethereum and BNB Chain, and has since expanded native issuance to Solana, Sui, Arbitrum, and TON. On Solana, FDUSD launched in early 2025 with immediate integrations from Kamino Finance, Raydium, and Meteora, positioning it as a DeFi-ready stablecoin for the network's liquidity ecosystem.

Core Mechanism

FDUSD is a custodial, fiat-backed stablecoin pegged 1:1 to the US dollar. The issuing entity is FD121 Limited, a Hong Kong-incorporated company branded as First Digital Labs. For each FDUSD token in circulation, an equivalent dollar value of reserve assets is held in fully segregated accounts by First Digital Trust Limited, a licensed Trust and Company Service Provider in Hong Kong. Reserves are composed primarily of US Treasury bills, supplemented by overnight reverse repurchase agreements, fixed deposits, and cash balances. The custodian maintains accounts at financial institutions across Hong Kong, Singapore, Australia, Canada, Luxembourg, and the United States, with counterparties required to hold a minimum S&P A-2 short-term credit rating.

Monthly independent attestation reports are published to verify that FDUSD's circulating supply is fully matched by reserves. These reports are produced by Prescient Assurance LLC, a licensed CPA firm. As of January 2024, reserves totaled approximately $2.59 billion: roughly 59% in US Treasury bills, 22% in fixed deposits, and 15% in cash.

Key Features

Multi-chain native issuance. Rather than relying on bridged or wrapped versions, First Digital Labs issues FDUSD natively on each chain it supports. As of mid-2025, that covers Ethereum, BNB Chain, Solana, Sui, Arbitrum, and TON. Native issuance means each chain's token is independently minted and backed, avoiding bridge risk.

Solana integration. FDUSD launched on Solana in early 2025, leveraging the network's high throughput and low transaction fees. Initial DeFi integrations included Kamino Finance (lending and yield), Raydium (AMM liquidity pools), and Meteora (dynamic liquidity). The Solana expansion was announced at Binance Blockchain Week 2024 in October of that year, with the Solana Foundation President Lily Liu publicly endorsing the move.

Reserve segregation. FDUSD reserves are held in accounts segregated from First Digital Trust's operational assets. The bankruptcy-remote trust structure is intended to insulate token holders from the custodian's own balance sheet risk.

Monthly attestations. Rather than annual audits, First Digital publishes monthly third-party attestation reports covering total circulating supply and reserve adequacy.

Smart Contract Security

FDUSD smart contracts implement the ERC-20 standard and have undergone five audits across two firms: PeckShield and Quantstamp. Both firms identified governance concentration risks — namely, that a single owner account holds mint, burn, freeze, and pause privileges. First Digital Labs responded to PeckShield's findings by replacing the owner account with a multisig. No critical vulnerabilities were identified in any audit. As of the time of independent review, no formal bug bounty program was in place.

Token and Market Presence

FDUSD reached a $1 billion market capitalization in December 2023, approximately six months after its debut. By late 2024 the market cap peaked near $2.6 billion. As of June 2026, circulating supply is approximately 350 million FDUSD, reflecting a reduction from peak levels. The token is listed on Binance, BTSE, Gate.io, and other centralized exchanges, with the bulk of trading volume historically concentrated on Binance.

Team

First Digital Labs is led by Vincent Chok, Founder and CEO, who also heads First Digital Group. Gunnar Jaerv serves as COO and Aleck Lee as CFO. First Digital Group is incorporated in Gibraltar; its Hong Kong-based operating subsidiaries FD121 Limited (issuer) and First Digital Trust Limited (custodian) carry out the stablecoin and custody functions respectively. First Digital was recognized by HSBC as one of its "Emerging Giants in Asia Pacific" in 2022.

Regulatory and Compliance Status

First Digital Trust Limited holds a Trust and Company Service Provider (TCSP) license in Hong Kong. The group also holds a VASP registration with Lithuania's Financial Crime Investigation Service and an HMRC registration in the UK. Singapore MPI license and UAE VARA and EU EMI license applications were in preparation as of late 2024. FD121 Limited, the stablecoin issuer, was not included in Hong Kong's HKMA stablecoin regulatory sandbox as of the time of independent assessment. The firm operates in a regulatory environment that has not yet issued explicit stablecoin-specific licensing in Hong Kong.

Notable Events

In April 2025, FDUSD briefly depegged to approximately $0.87 following public allegations by Justin Sun, founder of Tron, who accused First Digital Trust of misappropriating $456 million in client funds belonging to Techteryx (issuer of TrueUSD). First Digital Labs denied the claims, published attestation reports confirming FDUSD's full backing, processed $26 million in redemptions to demonstrate liquidity, and announced legal action against Sun. The depeg recovered relatively quickly. The incident highlighted FDUSD's dependence on a single exchange (Binance) for the majority of its trading volume and the importance of on-chain liquidity depth.

Solana Ecosystem Fit

Solana's stablecoin market has grown substantially, with USDC and USDT dominating but institutional and DeFi-focused alternatives gaining traction. First Digital Labs positions FDUSD as a compliant, Asia-Pacific-originated alternative with institutional-grade custody, appealing to trading desks, exchanges, and DeFi protocols seeking reserve diversification. Native issuance on Solana — rather than bridging — and immediate integration with Kamino, Raydium, and Meteora upon launch suggest a deliberate strategy to become embedded in the network's core liquidity infrastructure rather than a peripheral offering.