May 20, 2024
Latest Cryptocurrency News

First Digital Introduces FDUSD Stablecoin Backed by Cash Reserves in Asia 

First Digital Group announced the launch of its USD stablecoin, FDUSD, on Thursday, June 1. The stablecoin will be issued on the Ethereum and BNB platforms, with First Digital currently in discussions with major exchanges for potential listings. FDUSD, backed by “high-quality reserves” of cash and cash equivalents held in regulated financial institutions across Asia, will be issued by First Digital Trust, a trust company registered under Hong Kong’s Trust Ordinance. 

Maintaining compliance with Hong Kong’s Trust Ordinance requirements, First Digital ensures that all reserves are held in segregated accounts, preventing asset co-mingling. Vincent Chok, CEO of First Digital, expressed enthusiasm for the stablecoin’s 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.” 

However, the stablecoin will not be accessible to retail users in Hong Kong at present. Regulatory authorities in the region have expressed that stablecoins should not be publicly traded by retail investors until the proposed rules for this asset class are formally implemented. As reported by CoinDesk in February, the Hong Kong Monetary Authority (HKMA) and other financial regulators are considering new regulations for stablecoins, potentially requiring local incorporation, real-world asset backing (excluding algorithmic stablecoins), and separate operations for issuers and virtual asset exchanges. The timeline for implementing these regulations remains uncertain. 

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