First Digital Digital Trust plans public listing as FDUSD shrinks

Listing plan puts a Binance-linked firm in line for a large stake

First Digital Trust, the company behind the FDUSD stablecoin, said early last month that it had signed a business combination agreement to become publicly listed. The deal is expected to close next year, the source said.

FDUSD is a stablecoin, a crypto token designed to stay near $1 in value. Its market value has fallen by more than $4 billion since its peak in April 2024.

A Binance-related company, Alphanest Holdings, is a major warrant holder in First Digital Trust. A warrant gives the holder a right to buy shares. If it is exercised, the source said, that Binance entity would hold about one-quarter of the equity in the firm after the merger. Alphanest is currently owned by Binance Holdings (IE) Limited. It was previously owned by Binance founder Changpeng Zhao.

Key numbers from the investor presentation

• Pre-money valuation for the merger: $250 million.
• Revenue for fiscal year 2025, ended June 30, 2025: $87 million.
• Unaudited revenue for 2026, which the source said presumably also ended in June: $27 million.
• Reported net revenue of $6 million in 2025 and a net revenue loss of $4 million in 2026.
• Adjusted operating loss rose from $17 million to $19 million.
• FDUSD supply fell by about another $50 million after June 30.

The presentation said FDUSD revenue is driven by reserves in cash and equivalents. Reserves are funds set aside to support the stablecoin. The source said revenue would be expected to fall as the stablecoin market value falls.

Most FDUSD is tied to Binance-labelled wallets

Protos reported that about 90% of FDUSD on Ethereum is in Binance-labelled addresses, worth about $170 million. It also reported about $43 million of FDUSD on Sui in a Binance-labelled wallet.

Protos said it believes about 80% of all FDUSD is held in Binance wallets. That figure is an estimate from Protos, not a confirmed total from First Digital Trust in the source material.

Legal disputes involving First Digital Trust

First Digital Trust lists its defamation lawsuit against Justin Sun as a material legal proceeding on its investor relations page. Sun had claimed on X that First Digital Trust was unable to fulfil redemptions and was effectively insolvent. First Digital Trust then said on X that every FDUSD was backed 1:1 by cash and cash equivalents and that it remained fully solvent. It later filed the suit against Sun.

Sun and Techteryx, a firm related to TrueUSD, had previously sued First Digital Trust. They alleged that First Digital Trust misappropriated reserves for TrueUSD. That allegation is disputed in the source material and is not presented as a proven fact.

The source also said First Digital Trust recently settled with Archblock and TrueCoin, two firms that previously operated TrueUSD. Techteryx has asked for a Chapter 11 trustee to be appointed in the Archblock bankruptcy case. In that filing, Techteryx accused Archblock of fraud. Techteryx also pointed to its earlier allegations about Legacy Trust and First Digital Trust directing TrueUSD reserves to the Aria Fund. Those are allegations made by Techteryx.

What remains disputed

The source presents opposing claims about First Digital Trust's solvency and about the handling of TrueUSD reserves. Sun's insolvency claim and First Digital Trust's response are both claims. Techteryx's fraud and misappropriation allegations also remain allegations in the material provided.

Where this report comes from

• Protos