Reserve Accounts Report
With Independent
Accountant’s Report
FD121 Limited
June 30, 2024

Reserve Accounts Report With Independent Accountant’s Report

Table of Contents
Independent Accountant’s ReportReserve Accounts Report352

Reserve Accounts Report With Independent Accountant’s Report

Independent Accountant’s Report
FD121 Limited (the “Company”)
Room 4001, 40/F, Tower 1, Lippo Centre, 89 Queensway, Admiralty, Hong Kong
We have examined the Company’s below assertions. The Company’s management is responsible forits assertions. Our responsibility is to express an opinion on management’s assertions based on ourexamination. Management’s assertions, which are summarized in the attached report, (hereafterreferred to as the “Reserve Accounts Report”), which we examined are as follows:●The Reserve Accounts Report refers to the total supply of First Digital USD tokens (“FDUSD”)
as of June 30, 2024, recorded at 9:00PM Eastern Time (“ET”) (July 1, 2024 at 9:00AM HongKong Time (“HKT”), being the “Report Date and Time”). Such FDUSD, (which also represents
thetotal
circulatingsupply)
asdenoted
undercontract
0xc5f0f7b66764f6ec8c8dff7ba683102295e16409 at 18 decimals recorded on the Report Dateand Time is 2,079,062,869.90 FDUSD (being 49,872,439.69 in BSC and 2,029,190,430.21 inEthereum) as reported by BscScan and Etherscan.

●The Reserve Accounts Report refers to the account held and managed by a related party,
being a public trust company registered in Hong Kong and a custodian for the Company (the“Custodian”, and the account being the “Custody Account”). The USD balance is custodied
in the Custody Account for the benefit of the Company. In addition to the Custody Account,
the Custodian has opened distinct accounts with separate institutions held under theCustodian’s name for the benefit of the Company, including Hong Kong financial institutions,an affiliated Hong Kong trust company, Singapore financial institutions, an Australianfinancial institution, a Canadian financial institution and a Luxembourg financial institution,
which are segregated from the Custody Account and where cash is held, fixed term deposits
or debt instruments that are expressly guaranteed by the full faith and credit of the UnitedStates Government (such accounts in aggregate, being the “Reserve Accounts”). The U.S.
dollar (denoted as “US$”) balance amounts backed by U.S Treasury Debt in the Reserve
Accounts in the Reserve Accounts is at least equal to or greater than US$2,079,062,869.90 at
the Report Date and Time. This contemplates the impact of outstanding wires, deposits intransit or other reconciling items.

●Each financial institution bearing the Reserve Accounts and rated by Standard and Poor haveearned a rating of not lower than an “A-2” grade for its short-term local issuer credit ratings.

●The Reserve Accounts Report refers to the Company’s Reserve Account holdings as of theReport Date and Time, which includes the disclosure of the total fair value of the Company’s
asset holdings by asset type. Any amounts held in U.S. Treasury Debt include additional
disclosures such as CUSIP and maturity date, as applicable.

●The total FDUSD supply, for which each FDUSD is assigned a redemption value, strictly pegged
at 1:1 to the U.S dollar by the Company, does not exceed the balance of the Reserve Accounts
reported below.

Our examination was conducted in accordance with attestation standards established by theAmerican Institute of Certified Public Accountants. Those standards require that we plan and performthe examination to obtain reasonable assurance about whether management’s assertions are fairly3

Reserve Accounts Report With Independent Accountant’s Reportstated, in all material respects. The nature, timing, and extent of the procedures selected depend
on our judgment, including an assessment of the risks of material misstatement of management’s
assertions whether due to fraud or error.
In performing our risk assessment, we considered the Company's internal controls relevant to theaforementioned assertions, in order to design procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company's internalcontrol. Accordingly, we did not test the operating effectiveness of such controls and express no such
opinion on such controls.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis
for our opinion.
At any given time, the Company has the right to hold funds in any combination of varying financial
instruments at their discretion. Those instruments generally include, but are not necessarily limited
to U.S. dollars, U.S Treasury backed Bills and Overnight Reverse Repurchase Agreements.
The expressed examination opinion on the above assertions are limited solely to the Reserve Accounts
Report at the Report Date and Time noted above. Any activity prior to or after the Report Date andTime at 9:00PM ET (9:00AM HKT) was not considered when testing the assertions described above. Inaddition, we have not performed any procedures or provided any level of assurance on the financial
or non-financial activity of the Reserve Accounts on dates or times other than the Report Date andTime noted within this report.
In our opinion, management’s assertions noted above are fairly stated as of the Report Date andTime, in all material respects.

------------------------John D. Wallace, CPA
July 9, 2024

4

Reserve Accounts Report With Independent Accountant’s ReportReserve Accounts Report
FD121 Limited (the “Company”)
Room 4001, 40/F, Tower 1, Lippo Centre, 89 Queensway, Admiralty, Hong Kong
June 30, 2024 at 9:00PM ET (July 1, 2024 at 9:00AM HKT) (hereafter “Report Date and Time”)
The management of the Company hereby makes the following assertions as of the Report Date andTime:
FDUSD tokens issued and in circulation (Notes 1 and 5)

2,079,062,869.90
FDUSD

U.S. dollars / amounts backed by U.S. government guaranteed debt instruments
reserved for FDUSD token holders (Note 2)

US$2,079,062,869.90

The Company’s total Reserve Accounts, which are greater than or equal to the total supply of FDUSD,
are comprised of the following asset holdings as of the Report Date and Time (Notes 2, 4 and 5):

Description

CUSIPMaturity Date

U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills

912797KH9912796Y52
912797KN62-Jul-24
5-Jul-249-Jul-24

U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills
U.S. Treasury Bills

912797GB711-Jul-24
912797KP116-Jul-24912797JS718-Jul-24912797KQ923-Jul-24912797JT525-Jul-24912797KR730-Jul-24912797JU21-Aug-24912797GK78-Aug-24912797KX413-Aug-24
912797KY2
20-Aug-24
Total U.S. Treasury Bills:

Fixed Deposits
1-week Fixed Deposit
8-days Fixed Deposit
8-days Fixed Deposit
9-days Fixed Deposit
9-days Fixed Deposit
11-days Fixed Deposit

1

3-Jul-24
3-Jul-24
5-Jul-24
3-Jul-24
5-Jul-24
2-Jul-24

Fair Value as ofReport Date andTime
213,010,195.97
72,307,892.30
138,838,482.00
11,962,521.18
304,187,062.70
51,834,786.41
191,413,114.62
32,054,830.52
45,985,443.66
133,773,543.06
20,287,086.00
113,609,946.36
91,032,019.34$1,420,296,924.12
Carrying Value1 as ofReport Date andTime$49,225,092.00$10,806,870.00$25,009,583.34$7,505,737.50$30,415,504.00$38,043,700.00

The carrying values of fixed deposits approximate their fair values.

5Reserve Accounts Report With Independent Accountant’s Report

11-days Fixed Deposit
12-days Fixed Deposit
13-days Fixed Deposit
13-days Fixed Deposit
2-weeks Fixed Deposit

5-Jul-24
3-Jul-24
2-Jul-24
4-Jul-24
2-Jul-24$7,505,737.50$26,029,900.00$40,056,222.22$22,025,300.00$15,023,000.00

Total Fixed Deposits:$271,646,646.56

Total U.S. Dollars Held:
Total Assets Held in Reserve Accounts:$403,910,537.02$2,095,854,107.70

Notes:
1. The total supply of First Digital USD tokens (“FDUSD”) (which also represents the total
circulating supply) as denoted under contract
0xc5f0f7b66764F6ec8C8Dff7BA683102295E16409 at 18 decimals, recorded at the Report
Date and Time is 2,079,062,869.90 FDUSD (being 49,872,439.69 in BSC and2,029,190,430.21 in Ethereum) as reported by BscScan and Etherscan.
2. This Reserve Accounts Report refers to the account held and managed by a related party,
being a public trust company registered in Hong Kong and a custodian for the Company (the“Custodian”, and the account being the “Custody Account”). The USD balance is custodied
in the Custody Account for the benefit of the Company. In addition to the Custody Account,
the Custodian has opened distinct accounts with separate institutions held under theCustodian’s name for the benefit of the Company, including Hong Kong financial institutions,an affiliated Hong Kong trust company, Singapore financial institutions, an Australianfinancial institution, a Canadian financial institution and a Luxembourg financial institution,
which are segregated from the Custody Account and where cash is held, fixed term deposits
or debt instruments that are either expressly guaranteed by the full faith and credit of theUnited States Government (such accounts in aggregate, being the “Reserve Accounts”). The
U.S. dollar balance in the Reserve Accounts is at least equal to or greater than
US$2,079,062,869.90, respectively, at the Report Date and Time. This contemplates theimpact of outstanding wires, deposits in transit or other reconciling items.
3. Each financial institution bearing the Reserve Accounts and rated by Standard and Poor haveearned a rating of not lower than an “A-2” grade for its short-term local issuer credit ratings.
4. This Reserve Accounts refers to the Company’s Reserve Accounts holdings as of the Report
Date and Time, which includes the disclosure of the total fair value, calculated using thepublicly available pricing as of the Report Date and Time, of the Company’s asset holdings
by asset type as reported above.
5. The total FDUSD supply, for which each FDUSD is assigned a redemption value of US$1.00 by
the Company, does not exceed the balance of the Reserve Accounts reported above.

6

Reserve Accounts Report With Independent Accountant’s Report

To the best of the knowledge and belief of the undersigned, the information contained in theReserve Accounts Report as of the Report Date and Time is accurate and complete.

------------------------Vincent Chok, CEOJuly 9, 20247