FDUSD is a Stablecoin backed by fiat currency, providing users with a stable digital currency that can reduce volatility in the cryptocurrency market. This makes it more attractive to investors and merchants who are concerned about price fluctuations. Additionally, FDUSD improves the efficiency of financial transactions by reducing costs and enhancing speed and accuracy. It also facilitates cross-border transactions and reduces fees and processing times. The stability of FDUSD is maintained through a 1:1 peg with the corresponding fiat currency, ensuring that the value of reserve assets matches or exceeds the total quantity of stablecoins. It operates under strict custodial arrangements and can be programmed for financial contracts, escrow, and insurance without intermediaries.