Hong Kong-based custody firm, First Digital, has announced the launch of a US dollar stablecoin called First Digital USD (FDUSD). Although the press release did not explicitly state it, Binance CEO Changpeng Zhao mentioned that FDUSD would be issued on the BNB smart chain, thereby expanding the options in the cryptocurrency market.
FDUSD is a programmable stablecoin that is backed by US dollars or assets of equivalent value. It aims to reduce the risk of price fluctuations in the cryptocurrency market and improve the efficiency of financial transactions. The stablecoin will be issued by First Digital Labs, a subsidiary of First Digital, which is a regulated custody company with a business license. The press release emphasizes transparency and credibility, with the underlying assets being held in regulated financial institutions in Asia, separate from the company’s assets.
First Digital CEO Vincent Chok highlighted the company’s mission to provide a safe and efficient digital currency that can be seamlessly used in everyday transactions. With the launch of FDUSD, the company takes a significant step toward achieving this goal, especially in an increasingly uncertain traditional financial system.
Headquartered in Hong Kong, First Digital aims to target global markets and transform the global financial system. It plans to establish a cooperative relationship with Hong Kong regulators, aligning with the new cryptocurrency exchange regulations implemented in the region. While Hong Kong allows retail investors to trade cryptocurrencies, stablecoin regulations are expected to be in place between 2023 and 2024.
Stay tuned to CoinTopper for more news!