First Digital Group, a Hong Kong-based qualified custodian and trust company, announced the launch of its First Digital USD (FDUSD) Stablecoin pegged to the United States dollar on June 1. The new stablecoin is programmable and described as being able to execute contracts, escrow services and insurance without intermediaries. It will work on the BNB smart channel.
FDUSD is issued by First Digital Labs, a subsidiary of digital asset custodian First Digital Trust, which is regulated under the Hong Kong Trustees Ordinance. By law, FDUSD will be backed one-to-one by US dollar reserves or highly liquid, high-quality assets held in regulated Asian financial institutions that cannot be co-mingled with other First Digital assets.
First Digital, a Hong Kong-licensed trust company, is launching a new USD-pegged stablecoin (FDUSD), the #BNB Smart chain.
— CZ Binance (@cz_binance) June 1, 2023
First Digital CEO Vincent Chok said in a report:
“First Digital is fully committed to regulatory compliance to set a new standard for legitimacy in the space.”
In addition, the company pledged to “ensure full compliance with current and future applicable laws and regulations” and to “participate in the development of their evolution, including the development of any regulatory regime including FDUSD and/or First Digital may rise in the foreseeable future.”
The stablecoin will be exchangeable for US dollars.
Related: First Digital Trust Announces $2.15M in Funding for Asian Digital Payments Service
The launch of FDUSD coincides with the first day of retail cryptocurrency trading in Hong Kong under new regulatory guidelines that have led to a rapid increase in 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 payments and technology industries.
Magazine: Unstablecoins: Depegging, bank runs and other imminent risks
