Disclosure: FUSD is issued by CMC Group, which also owns Liquid NFTs and publishes Crypto Magazine, where I'm Deputy Editor.

FUSD is a token backed by USDC that's designed to rise slowly in value instead of sitting at exactly one dollar. It's the currency Liquid NFTs prices in and the asset that backs every Liquid NFT's floor. In late September 2026 it traded at about $1.07. If you hold anything on Liquid, FUSD is what you're really relying on, so it's worth ten minutes to understand.

How it's meant to work

According to its issuer, each FUSD is backed by USDC held inside its smart contract. Every transaction pays a 2.5% fee. Half of that fee goes into the backing, and half funds development. The backing grows faster than the supply, so the price per FUSD creeps up. The issuer's line is that "at any moment you look at the price of FUSD, it's the lowest it will ever be". You buy FUSD with USDC at the live rate on buy.fusdcrypto.com and, the site says, can sell it back at any time at the rate in your wallet.

How a 2.5 percent transaction fee is meant to lift FUSD's price A transaction pays a 2.5% fee 1.25% into the USDC backingstays in the contract 1.25% to developmentleaves the system More backing per FUSDprice edges up No transactions, no fees, no rise. The growth depends on the token being used.
The mechanism as the issuer describes it. The price rises from use, not from interest earned on the reserves.

How it differs from a normal stablecoin

USDC and USDT aim to be worth exactly one dollar forever. FUSD aims to be worth a little more each month. That makes it a stablecoin in the sense that it's backed by dollars and shouldn't fall, but not in the sense most people mean: it isn't pegged. Our stablecoins explainer covers the three usual designs. FUSD is closest to a fiat-backed coin, except the backing sits in a contract rather than a bank, and a fee is added on top.

Where it lives

FUSD is live on Ethereum, Polygon, BNB Chain and BESC Hyperchain, and it's used across Liquid's five chains. The issuer publishes the contract address as 0xcfd6AaA9373CEebcC03D3cd9d87d4033da67B8e9. A sister token, FUST, sits alongside it.

What to check before you rely on it

These are the same questions we'd ask of any stablecoin, and at the time of writing we couldn't find public answers to all of them:

  • The contract. Look the address up on the block explorer for your chain. Is the code verified? Can anyone, including the team, move the USDC backing out?
  • An audit. We found no published audit on the FUSD site. Liquid told us its contracts were audited by Contract Wolf; ask to see the report, and check whether it covers FUSD itself.
  • The reserves. On-chain backing can be checked directly: the USDC in the contract against the FUSD in circulation. That's more transparent than a bank reserve, if someone publishes the figures.
  • Redemption in a rush. The test of any stablecoin is a bad week, when everyone wants out at once.

None of those points is an accusation. They're the checklist, and the honest answer to "is FUSD safe?" is "check these four things". When CMC Group publishes an audit and reserve figures, we'll add them here.

Why it matters for Liquid NFTs

Every Liquid NFT's floor is held in FUSD. If FUSD does what it's designed to do, that floor rises twice: once from Liquid's fees and again from FUSD itself. If FUSD ever had a problem, the floor would carry it. Read how Liquid NFTs works next, then decide how much of your crypto you'd want sitting in one issuer's token. Our due diligence checklist applies here too.