What could affect the price of FDUSD?
FDUSD’s $1 value is under pressure due to changes in interest rates and new growth opportunities.
- Fed Rate Cuts – Lower interest earnings make it harder to keep reserves strong (CoinDesk).
- Multi-Chain Expansion – Adding TON and Arbitrum blockchains increases FDUSD’s usefulness (First Digital Labs).
- Regulatory Scrutiny – New U.S. laws could raise compliance costs or boost demand from big financial players.
Deep Dive
1. Interest Rate Changes (Negative Impact)
Overview:
In September 2025, the Federal Reserve cut interest rates, reducing FDUSD’s yearly income by about $2.9 million. This is because the reserves backing FDUSD are invested in short-term U.S. Treasury bonds, which now pay less interest. With rates currently between 4.00% and 4.25%, further cuts could hurt First Digital Labs’ profits.
What this means:
Stablecoins like FDUSD depend on earnings from their reserves to cover operating costs and ensure users can redeem their coins for $1 each. If interest rates stay low for a long time, FDUSD might struggle to keep its $1 peg if reserve earnings don’t cover expenses.
2. Blockchain Integrations (Positive Impact)
Overview:
FDUSD recently launched on two new blockchains: TON in July 2025 and Arbitrum in June 2025, bringing its total to six supported blockchains. This allows FDUSD to be used in more places, such as making payments on Telegram and participating in Solana’s BTCFi ecosystem, where FDUSD helps with lending and borrowing using Bitcoin as collateral (Zeus Network).
What this means:
Being available on multiple blockchains makes FDUSD more useful for decentralized finance (DeFi) and international transactions. With over 900 million Telegram users on TON, FDUSD could see more adoption, which helps keep liquidity strong and supports the $1 peg.
3. Regulatory and Market Risks (Mixed Impact)
Overview:
The U.S. Guiding and Establishing National Innovation for Stablecoins Act passed in July 2025 requires stricter audits of reserves but also recognizes FDUSD as suitable for institutional use. However, FDUSD still lags behind bigger stablecoins like USDT (63% market share) and USDC (28%) in trading volume. Additionally, Binance removed some smaller trading pairs like TNSR/FDUSD in August 2025.
What this means:
Clearer regulations might encourage traditional financial institutions to work with FDUSD. But FDUSD faces tough competition from established stablecoins. Exchange delistings could reduce trading liquidity, though major trading pairs remain available.
Conclusion
FDUSD’s ability to maintain its $1 value depends on balancing income from reserves with growth in DeFi and cross-border uses. Expanding to TON and Arbitrum opens new opportunities, but Federal Reserve policies and regulatory costs present challenges.
Watch this: Can FDUSD’s monthly reserve reports (First Digital Labs) keep user trust if interest earnings continue to drop?
What are people saying about FDUSD?
FDUSD is navigating a mix of cautious optimism and strategic growth. Here’s the latest:
- Expanding reach: Integration with the TON Blockchain boosts hopes for more decentralized finance (DeFi) activity.
- Institutional moves: Partnership with Zeus Network aims to enable Bitcoin-based lending on Solana.
- Trust and compliance: New issuer registered in the British Virgin Islands (BVI) and efforts to increase audit transparency.
- Exchange changes: Binance removes some FDUSD trading pairs amid stablecoin adjustments.
Deep Dive
1. @FDLabsHQ: TON Blockchain Integration (Positive)
“Native FDUSD now live on @ton_blockchain – accessible via Telegram for 900M+ users”
– @FDLabsHQ (132K followers · 2.1M impressions · July 28, 2025)
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What this means: This is a positive development for FDUSD. Telegram’s huge user base (over 900 million) could help drive everyday use of FDUSD for small payments and money transfers. However, the real impact will depend on how many users actually start using it regularly.
2. @ZeusNetworkHQ: Solana BTCFi Boost (Positive)
“$35M+ BTC now flows through FDUSD-zBTC pairs for lending/borrowing on Solana”
– @ZeusNetworkHQ (89K followers · 1.8M impressions · July 22, 2025)
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What this means: This is another positive sign. FDUSD is becoming a key part of Bitcoin-based lending and borrowing on Solana, which could attract more users and liquidity. Still, this depends on the adoption of zBTC, a wrapped Bitcoin token, which carries some risk if counterparties don’t perform as expected.
3. @FDLabsHQ: Regulatory Positioning (Neutral)
“New BVI-based issuer broadens FDUSD’s jurisdictional compliance”
– @FDLabsHQ (132K followers · 1.5M impressions · August 15, 2025)
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What this means: This move is neutral. Registering a new issuer in the British Virgin Islands expands FDUSD’s legal compliance and could attract institutional investors. However, it comes after a price drop in April 2025 linked to insolvency concerns around Justin Sun, so some caution remains.
4. CoinMarketCap: Exchange Dynamics (Negative)
Binance delists DOGS/FDUSD, PEOPLE/FDUSD margin pairs on August 8
– CoinMarketCap report (August 4, 2025)
View article
What this means: This is a negative short-term signal for FDUSD’s liquidity, as Binance is removing some trading pairs involving FDUSD. However, this is part of a broader cleanup of stablecoin pairs on the exchange and doesn’t necessarily reflect problems specific to FDUSD.
Conclusion
The outlook for FDUSD is mixed. Its expansion across multiple blockchains like TON, Solana, and Arbitrum positions it well as a tool for decentralized finance. However, ongoing delistings on major exchanges suggest liquidity is becoming more fragmented. Keep an eye on FDUSD’s market share on TON through the end of 2025 — strong growth there could help balance out challenges from exchange changes.
What is the latest news about FDUSD?
First Digital USD (FDUSD) is adapting to changing market conditions—from reduced earnings to strategic growth. Here’s the latest:
- Fed Rate Cut Lowers FDUSD Revenue (September 24, 2025) – Annual revenue fell by $2.92 million due to lower Treasury yields.
- $11 Million FDUSD Recovered After Venus Protocol Hack (September 8, 2025) – Quick action restored stolen stablecoins.
- Global Growth Through New BVI Issuer (August 15, 2025) – A new regulated entity expands FDUSD’s reach to institutional investors worldwide.
In-Depth Look
1. Fed Rate Cut Lowers FDUSD Revenue (September 24, 2025)
What happened:
The Federal Reserve lowered interest rates by 0.25%, which caused FDUSD’s annual revenue to drop by $2.92 million. This is because stablecoins like FDUSD earn income from investing in U.S. Treasury bills, and lower rates mean lower returns. Despite this, FDUSD kept its stable $1 value, and trading volume on Binance reached $7.3 billion, making up nearly 9% of the platform’s stablecoin activity.
Why it matters:
FDUSD’s earnings depend on traditional financial markets, so changes in interest rates directly affect its profitability. However, strong trading activity on major exchanges like Binance helps reduce short-term risks. (CoinDesk)
2. $11 Million FDUSD Recovered After Venus Protocol Hack (September 8, 2025)
What happened:
A phishing attack targeted the CEO of Eureka Trading, leading to $11.4 million in FDUSD and other assets being stolen. The Venus Protocol quickly paused operations, liquidated the attacker’s positions, and returned the funds within 12 hours.
Why it matters:
This event shows that while FDUSD is used in high-risk decentralized finance (DeFi) platforms, the protocols involved can respond effectively to security breaches, helping maintain user trust. (The Block)
3. Global Growth Through New BVI Issuer (August 15, 2025)
What happened:
First Digital launched a new issuer based in the British Virgin Islands (BVI) for FDUSD. This entity keeps the 1:1 USD backing intact while expanding regulatory compliance for international transactions. This follows recent integrations with Arbitrum in June and the TON blockchain in July.
Why it matters:
This expansion makes FDUSD more attractive to institutional investors looking for regulatory diversity and aligns with Hong Kong’s 2025 stablecoin licensing plans. (FDLabsHQ)
Conclusion
FDUSD is managing economic challenges by growing its ecosystem, maintaining strong liquidity on exchanges, and ensuring regulatory compliance worldwide. The key question remains: can its multi-chain approach and focus on steady yields offset shrinking profits in a low-interest environment?
What is expected in the development of FDUSD?
FDUSD’s roadmap is focused on expanding its blockchain presence and working with institutions.
- TON Blockchain Integration (July 28, 2025) – Improves payments on Telegram and boosts decentralized finance (DeFi) options.
- BVI Entity Expansion (August 15, 2025) – Sets up a British Virgin Islands entity to meet global regulations and support wider issuance.
- Multi-Chain Growth (Ongoing) – Expands to Layer 2 networks like Base and zkSync to increase liquidity and use cases.
Deep Dive
1. TON Blockchain Integration (July 28, 2025)
Overview: FDUSD is now natively available on The Open Network (TON), which is Telegram’s own blockchain. This allows over 900 million Telegram users to send FDUSD instantly. Important platforms like Toncoin and Wallet have integrated FDUSD for sending money and DeFi activities (TON Foundation).
What this means: This is a positive step for adoption since TON’s large user base can increase FDUSD’s everyday use. However, it faces competition from USDT, another popular stablecoin on Telegram.
2. BVI Entity Expansion (August 15, 2025)
Overview: First Digital created a new entity in the British Virgin Islands (BVI) to better manage FDUSD issuance worldwide. They keep a 1:1 reserve of USD to back FDUSD and follow offshore financial rules (First Digital Labs).
What this means: This move could help attract more institutional investors by aligning with global regulations. However, it also means FDUSD will face new regulatory reviews in different countries.
3. Multi-Chain Growth (Ongoing)
Overview: After launching on blockchains like Solana, Arbitrum, and Sui in 2025, FDUSD plans to expand to Ethereum Layer 2 solutions such as Base and zkSync. These networks offer faster and cheaper transactions, which can attract more DeFi users. CEO Vincent Chok described this as a “blockchain-agnostic” approach in a July 2025 interview.
What this means: Expanding across multiple blockchains can increase FDUSD’s liquidity and help it compete as a top stablecoin. However, there are technical risks like potential vulnerabilities in cross-chain bridges.
Conclusion
FDUSD is focusing on making its stablecoin easy to access (via TON), compliant with regulations (through BVI), and widely usable across blockchains. As regulations around stablecoins tighten worldwide, FDUSD’s transparency in audits and low fees could help it gain more market share against competitors like USDT and USDC.
What updates are there in the FDUSD code base?
FDUSD is expanding its presence across multiple blockchains with new integrations and compliance improvements.
- TON Blockchain Integration (July 28, 2025) – FDUSD is now available natively on Telegram’s TON blockchain, enabling fast and low-cost payments.
- Arbitrum Expansion (June 6, 2025) – FDUSD launched on Arbitrum, Ethereum’s Layer-2 solution, to increase liquidity in decentralized finance (DeFi).
- BVI Regulatory Structure (August 15, 2025) – A new issuing entity was created in the British Virgin Islands to strengthen global regulatory compliance.
Deep Dive
1. TON Blockchain Integration (July 28, 2025)
Overview: FDUSD is now directly available on the TON blockchain, which is integrated with Telegram’s platform that has over 900 million users. This means sending FDUSD is as simple and quick as sending a message, with very low fees.
TON supports a high number of transactions per second (around 100,000) and charges less than a cent per transaction. This makes it ideal for small payments and remittances. Popular DeFi apps on TON, like Tonco and Wallet.tg, now support FDUSD for trading and liquidity pools.
What this means: This is a positive development for FDUSD because it opens up access to a huge user base, making it easier for people to use FDUSD for everyday payments. (Source)
2. Arbitrum Expansion (June 6, 2025)
Overview: FDUSD launched on Arbitrum, a Layer-2 scaling solution for Ethereum that reduces transaction costs and speeds up processing. This helps FDUSD play a bigger role in DeFi platforms like Camelot DEX.
By moving to Arbitrum, FDUSD transactions now cost less than one cent, making it practical for frequent trading and earning yields. Within two weeks, over $200 million worth of FDUSD liquidity was added on Arbitrum.
What this means: This is somewhat positive for FDUSD as it increases its usability across blockchains. However, it faces competition from other stablecoins like USDC and USDT on Arbitrum. (Source)
3. BVI Regulatory Structure (August 15, 2025)
Overview: First Digital created a new issuing company in the British Virgin Islands to better comply with global stablecoin regulations, including Europe’s MiCA rules and standards in the Asia-Pacific region.
This new structure ensures FDUSD remains fully backed 1:1 by U.S. dollars and provides monthly reports on reserves across six blockchains.
What this means: This change is neutral in the short term but important for FDUSD’s long-term regulatory compliance and trustworthiness. (Source)
Conclusion
FDUSD is actively expanding across multiple blockchains like Solana, Arbitrum, and TON while improving regulatory compliance. This dual approach aims to increase DeFi liquidity and build regulatory confidence. However, it remains to be seen how spreading liquidity across different blockchains will affect FDUSD’s price stability during times of market stress.