First Digital Group launches USD-backed stablecoin in Hong Kong.
First Digital Group, a qualified custodian and trust company based in Hong Kong, has announced the launch of its First Digital USD (FDUSD) stablecoin on June 1. The FDUSD is pegged to the United States dollar and is programmable, meaning it can execute contracts, escrow services, and insurance without intermediaries. It will operate on the BNB Smart Chain.
The FDUSD is issued by First Digital Labs, a subsidiary of digital asset custodian First Digital Trust. First Digital Trust is regulated under the Hong Kong Trustee Ordinance, and the FDUSD will be backed one-for-one with U.S. dollar reserves or highly liquid, high-quality assets held in regulated Asian financial institutions that cannot be commingled with other First Digital assets, as required by law.
First Digital, a Hong Kong licensed trust company, launches a new USD pegged stablecoin (FDUSD), on #BNB Smart Chain.
— CZ Binance (@cz_binance) June 1, 2023
First Digital CEO Vincent Chok has stated that the company is fully committed to regulatory compliance to set a new standard for legitimacy in the space. In addition, the company has promised “to ensure full compliance with current and future applicable laws and regulations” and “participate in the shaping of their evolution, including the shaping of any regulatory regimes that FDUSD and/or First Digital may fall under in the foreseeable future.” The stablecoin will be redeemable for U.S. dollars.
The launch of the FDUSD coincides with the first day of retail cryptocurrency trading in Hong Kong under new regulatory guidelines, which have led to a rapid uptick of crypto-related activity in the administrative region, with several companies applying to open trading platforms.
In addition, the Hong Kong Monetary Authority launched an e-HKD central bank digital currency pilot project in May with the participation of 16 companies from the financial payment and technology sectors.
Related: First Digital Trust announces $2.15M funding for Asian digital payments service
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
