First Digital, a Hong Kong-based qualified custodian and trust company, has unveiled its new stablecoin, First Digital USD (FDUSD), pegged to the U.S. dollar but regulated in Asia. The unveiling coincides with the introduction of a new regulatory framework for digital assets in Hong Kong.
We are extremely excited to announce First Digital is introducing a new #stablecoin, First Digital USD (FDUSD), which is pegged to the U.S dollar but regulated in Asia! FDUSD will aim to provide a stable & reliable anchor to instill confidence in users. https://t.co/qHg5loOH4R — First Digital (@FirstDigitalHQ) June 1, 2023
According to a press release, the coin aims to provide a stable and reliable digital currency amid the volatile crypto market. Backed by high-quality reserves of cash and cash equivalents, FDUSD tokens are intended to be redeemable on a 1:1 basis for U.S. dollars or equivalent assets of fair value.
In addition, First Digital states that as a company registered under Hong Kong’s Trust Ordinance, they are mandated that all FDUSD reserves be held in segregated accounts at regulated financial institutions based in Asia. This will prevent any mingling of FDUSD reserves with other assets of First Digital Trust Limited.
First Digital also highlighted that the stablecoin is programmable, enabling the execution of various financial contracts, escrow services, and insurance without the involvement of intermediaries. Vincent Chok, CEO of First Digital, expressed his enthusiasm for the launch, stating:
The launch of this stablecoin represents a major stride forward in our mission to provide a secure and efficient digital currency that can be seamlessly integrated into everyday transactions.
The introduction of FDUSD comes at a significant time, coinciding with the implementation of new guidelines for virtual asset trading platform operators in Hong Kong on June 1.
Furthermore, regulatory uncertainty in the United States has prompted concerns among industry players, who fear the potential loss of the country’s leadership position in the sector. Brian Armstrong, CEO of Coinbase, recently acknowledged Hong Kong’s efforts to position itself as a new crypto hub, highlighting the favorable environment it offers for crypto-related businesses.
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