Hong Kong continues its recent crypto breakthrough. Hong Kong-based qualified custody and investment firm First Digital is introducing a new stablecoin that will be pegged to the US dollar but will be issued in Asia.
First Digital Is Launching A New Stablecoin
In a statement from the company, it was stated that this coin, called "First Digital USD" or FDUSD, is intended to be backed by one US dollar or an equivalent fair value asset on a one-to-one basis, and the reserves will be held in segregated accounts at institutions in Asia.
First Digital said the stablecoin is programmable and can enable financial contracts, escrow services and insurance to be executed without intermediaries.
"First Digital Labs will work closely with local and overseas regulatory authorities to ensure full compliance with current and future applicable laws and regulations and will ensure that any regulatory regime that First Digital Labs, FDUSD and/or First Digital may fall under for the foreseeable future." He will participate in shaping their evolution, including the shaping of
“Stablecoins provide more stability, a kind of remittance, a hedge against central bank policy makers trying to influence local currencies,” he added.
The announcement is particularly noteworthy, along with the new Hong Kong "Guidelines for Virtual Asset Trading Platform Operators" that will come into effect on June 1.
According to the country's Securities and Futures Commission, the rules set standards for the secure storage of assets, separation of client assets, avoidance of conflicts of interest, and cybersecurity.
*Not investment advice.