What could affect the price of FDUSD?
FDUSD is facing challenges to its stability from changes in interest rates and new regulations.
- Federal Reserve Rate Cuts – A 0.25% rate cut reduces FDUSD issuer revenue by about $2.9 million per year, putting pressure on profits (CoinDesk).
- Expansion to Multiple Blockchains – Adding FDUSD to TON and Arbitrum networks increases its usefulness but also raises risks related to smart contracts (The Defiant).
- Regulatory Oversight – Hong Kong’s new licensing rules starting in 2026 may require FDUSD to change how it holds reserves (CoinMarketCap).
Deep Dive
1. Sensitivity to Interest Rates (Negative Impact)
Overview:
The Federal Reserve’s rate cut in September 2025 lowers the income FDUSD earns from its Treasury bill reserves by about 0.25% annually. With $1.08 billion in reserves, this means roughly a $2.7 million drop in revenue. FDUSD remains fully backed, but ongoing low interest rates could hurt the profitability of First Digital Labs, the issuer.
What this means:
Stablecoin issuers like FDUSD make money from the difference between the yield on their reserves and their operating costs. When this margin shrinks, they may need to reduce expenses or cut incentives for users, which could make FDUSD less competitive compared to rivals like USDC that don’t charge fees.
2. Blockchain Integrations (Positive Impact)
Overview:
FDUSD expanded to the TON blockchain in July 2025 and Arbitrum in June 2025. TON is linked to Telegram, which has 900 million users, and Arbitrum is a major Ethereum Layer 2 network. The TON integration alone helped FDUSD’s total value locked (TVL) grow by $372 million in August (CCN).
What this means:
Adding FDUSD to more blockchains increases its usefulness for payments and decentralized finance (DeFi), leading to more minting and burning of the coin. However, using multiple blockchains also increases the risk of security breaches. For example, a $13 million hack involving FDUSD happened on the Venus Protocol in September 2025 (The Block).
3. Regulatory Compliance (Mixed Impact)
Overview:
Hong Kong passed new stablecoin licensing rules in May 2025 that require stablecoins to be backed 1:1 with fiat currency and undergo monthly audits. FDUSD’s March 2025 report showed $2.05 billion in reserves against $1.6 billion in circulation, but the new rules may require stricter custody arrangements (Yahoo Finance).
What this means:
Following these rules can increase trust in FDUSD but might force the issuer to hold more cash instead of higher-yield Treasury bills, reducing income. Additionally, the U.S. GENIUS Act passed in July 2025 requires FDUSD to prove it isn’t linked to sanctioned parties, complicating international transactions.
Conclusion
FDUSD’s ability to maintain its stable value depends on managing lower yields while growing through new blockchain partnerships. Expanding to multiple blockchains opens up more liquidity but also adds regulatory and security challenges. Keep an eye on FDUSD’s reserve composition reports—if the reserves shift from Treasury bills to cash, it could signal financial pressure or efforts to meet new regulations.
What are people saying about FDUSD?
FDUSD is quietly growing its presence while avoiding major setbacks. Here’s what’s happening now:
- Telegram’s TON integration – a big step toward widespread use
- Solana BTCFi pivot – aiming for institutional DeFi growth
- Binance margin pair cuts – a hit to altcoin trading liquidity
- Strong $1 peg – traders looking for small profit opportunities
- More audit transparency – addressing past doubts
Deep Dive
1. @FDLabsHQ: TON Blockchain Expansion is a positive sign
"Native FDUSD on Telegram’s layer-1 lets 900M+ users send money as easily as messages"
– @FDLabsHQ (89K followers · 2.1M impressions · July 28, 2025)
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What this means: Integrating FDUSD directly into Telegram’s platform could speed up user adoption. However, it’s important to keep an eye on how many users actually start using FDUSD on TON.
2. @ZeusNetworkHQ: Solana BTCFi Launch shows promise
"FDUSD is now the regulated stablecoin paired with zBTC, enabling large-scale lending and borrowing"
– @ZeusNetworkHQ (212K followers · 4.8M impressions · July 22, 2025)
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What this means: Using FDUSD as the stablecoin for Bitcoin on Solana could attract institutional investors to decentralized finance (DeFi). Still, USDC remains the market leader.
3. @Binance: Margin Pair Delistings are a setback
Binance will remove DOGS/FDUSD and PEOPLE/FDUSD margin trading pairs on August 8 due to liquidity concerns.
– Via CoinMarketCap (August 4, 2025)
What this means: Cutting these trading pairs slightly reduces FDUSD’s usefulness for margin traders, but regular buying and selling (spot trading) is still available.
4. @Byreal_CMCTrade: Peg Stability is steady
"There’s 52.85% buy pressure at $0.9972 support, perfect for tiny 0.02% profit trades"
– CMC Community Post (June 15, 2025)
View analysis
What this means: FDUSD’s price stays very close to $1, showing strong market support. This limits big profits but allows for small, frequent trades.
5. @FDLabsHQ: Monthly Attestations build trust
"The latest report shows FDUSD is backed 102% by U.S. Treasury securities"
– @FDLabsHQ (89K followers · 1.4M impressions · July 16, 2025)
View report
What this means: Regular transparency reports help fight past rumors about FDUSD’s financial health, reassuring users and investors.
Conclusion
The overall outlook for FDUSD is positive but cautious. Its expansion across multiple blockchains challenges USDC’s dominance, but recent delistings highlight its reliance on smaller altcoin markets. Keep an eye on FDUSD’s share in Bitcoin trading pairs (currently 8.86% compared to USDT’s 73.7%) as a key measure of its success as a “digital dollar.” Can FDUSD succeed without hype from retail traders? Its growing blockchain partnerships suggest it can, but liquidity will be the deciding factor.
What is the latest news about FDUSD?
First Digital USD (FDUSD) is adapting to interest rate cuts and expanding its reach while keeping its value stable at one dollar. Here are the key updates:
- Fed Rate Cut Reduces FDUSD Revenue by $2.9M (September 24, 2025) – Lower Treasury yields have decreased FDUSD’s annual income.
- FDUSD Expands Globally with TON Blockchain Integration (August 15, 2025) – A new issuer based in the British Virgin Islands (BVI) helps FDUSD grow its regulatory presence worldwide.
- Venus Protocol Recovers $11M FDUSD After Phishing Attack (September 8, 2025) – Quick action restored stolen funds following a security breach.
In-Depth Look
1. Fed Rate Cut Reduces FDUSD Revenue by $2.9M (September 24, 2025)
Summary:
The U.S. Federal Reserve lowered interest rates by 0.25% on September 17, which caused FDUSD’s annual revenue to drop by about $2.92 million. This happens because FDUSD issuers earn less from holding U.S. Treasury securities. Despite this, FDUSD still accounted for 8.86% of all stablecoin trading volume in September, with a total market volume of $1.25 trillion.
What this means:
While the rate cut affects FDUSD’s profits, it reflects broader economic challenges rather than problems specific to FDUSD. Stablecoins like FDUSD continue to be important for liquidity in the market, and FDUSD’s trading volume actually increased by over 10% compared to last year.
2. FDUSD Expands Globally with TON Blockchain Integration (August 15, 2025)
Summary:
FDUSD has grown its presence on the TON blockchain, which is linked to the popular messaging app Telegram. This expansion includes a new issuer based in the British Virgin Islands, improving FDUSD’s compliance with international regulations and making it easier to use across borders. Since launching on TON on July 28, FDUSD has gained access to Telegram’s 900 million-plus users.
What this means:
By operating under two jurisdictions, FDUSD strengthens its regulatory standing and increases its usefulness for payments and decentralized finance (DeFi) applications. The total value locked (TVL) in FDUSD liquidity pools on TON reached $372 million by August, showing strong early interest.
3. Venus Protocol Recovers $11M FDUSD After Phishing Attack (September 8, 2025)
Summary:
A phishing attack targeted the CEO of Eureka Trading, resulting in $11.4 million worth of FDUSD and other assets being stolen. The Venus Protocol quickly paused its operations, liquidated the attacker’s positions, and returned the stolen funds within 12 hours.
What this means:
This event highlights FDUSD’s important role in DeFi platforms and shows how Venus Protocol manages risks effectively. Throughout the incident, FDUSD maintained its $1 value, demonstrating the stablecoin’s reliability during crises.
Conclusion
FDUSD is navigating economic challenges while expanding into fast-growing areas like the TON blockchain. Although interest rate cuts reduce revenue, FDUSD’s ability to operate across multiple blockchains and respond quickly to security issues strengthens its position. Its focus on compliance and global growth could help FDUSD compete with other stablecoins like USDC in emerging markets.
What is expected in the development of FDUSD?
Here’s what’s coming for FDUSD:
- BVI Issuer Expansion (August 15, 2025) – Expanding regulatory oversight by adding a new issuer based in the British Virgin Islands.
- TON Ecosystem Growth (Ongoing) – Increasing use and rewards within Telegram’s blockchain network.
In-Depth Look
1. BVI Issuer Expansion (August 15, 2025)
What’s happening?
FDUSD is launching a new issuer company in the British Virgin Islands (BVI) to improve global compliance and make it easier for large institutions to use the stablecoin (FDLabsHQ). This move is part of a plan to spread regulatory oversight across different regions while keeping FDUSD fully backed by U.S. dollars at a 1:1 ratio.
Why it matters
This is a positive step for FDUSD because it boosts trust with regulators and could attract big financial players who want a stablecoin that follows the rules. On the downside, delays in getting licenses or political issues in the BVI could slow down adoption.
2. TON Ecosystem Growth (Ongoing)
What’s happening?
Since launching on the TON Blockchain in July 2025, FDUSD is working to become more integrated with Telegram’s massive user base of over 900 million people. Plans include increasing rewards for liquidity providers and building more decentralized finance (DeFi) partnerships (FDLabsHQ).
Why it matters
This could help FDUSD grow because TON’s fast blockchain is good for small payments and sending money across borders. However, FDUSD faces competition from other stablecoins like USDT and USDC on TON, and splitting liquidity among them could make growth harder.
Conclusion
FDUSD is focusing on expanding its regulatory footprint and deepening its presence in the Telegram ecosystem to stand out in a crowded stablecoin market. The big question is whether its integration with TON will help it grow faster than competitors or if the many options across blockchains will limit its success.
What updates are there in the FDUSD code base?
FDUSD’s technology has expanded to multiple blockchains, improving its use across different platforms.
- TON Blockchain Integration (July 28, 2025) – FDUSD is now available on Telegram’s TON blockchain, offering fast and low-cost transactions.
- Arbitrum Mainnet Launch (June 6, 2025) – FDUSD launched on Arbitrum, enhancing decentralized finance (DeFi) liquidity and scalability.
- Solana Deployment (January 15, 2025) – FDUSD is live on Solana, enabling high-speed stablecoin transactions.
Deep Dive
1. TON Blockchain Integration (July 28, 2025)
Overview:
FDUSD was launched directly on The Open Network (TON), the blockchain behind Telegram, which has over 900 million users worldwide.
This integration allows FDUSD to be used within Telegram wallets like @wallet_tg and @Tonkeeper, making peer-to-peer payments and DeFi activities smoother and faster. To do this, new smart contracts were created to work with TON’s fast and efficient Layer-1 blockchain.
What this means:
This is a positive development for FDUSD because it connects the stablecoin to a huge user base, encouraging everyday use and DeFi participation. It also makes international payments easier and cheaper, which could increase demand.
(Source)
2. Arbitrum Mainnet Launch (June 6, 2025)
Overview:
FDUSD expanded to Arbitrum, a popular Layer-2 network built on Ethereum that helps reduce transaction costs and increase speed.
The FDUSD smart contracts were optimized to work with Arbitrum’s technology, called optimistic rollups, allowing near-instant transactions and better liquidity for DeFi platforms like Camelot.
What this means:
This move is somewhat positive for FDUSD. It strengthens FDUSD’s presence in the Ethereum ecosystem, but it still faces strong competition from other stablecoins like USDC and USDT on Arbitrum. Lower fees might attract more institutional users for trading and lending.
(Source)
3. Solana Deployment (January 15, 2025)
Overview:
FDUSD became available on Solana, a blockchain known for its high speed and low transaction costs, ideal for remittances and DeFi.
This required working with Solana-based projects like Kamino Finance and Raydium to ensure FDUSD had enough liquidity and was compatible with popular wallets such as Phantom.
What this means:
This is a positive step for FDUSD because Solana’s growing network offers new opportunities for earning yields and connecting across blockchains. However, FDUSD will need to compete with established stablecoins like USDC to gain traction.
(Source)
Conclusion
FDUSD’s updates show a clear strategy to grow across multiple blockchains, focusing on scalability, adoption, and DeFi integration. The TON launch targets everyday users on a massive platform, while Arbitrum and Solana expansions enhance FDUSD’s appeal to institutions. The big question is whether FDUSD’s ability to operate across different blockchains will help it catch up to stablecoin leaders like USDT and USDC in 2026.