First Digital launches new USD-backed stablecoin

• First Digital’s stablecoin FDUSD will be pegged on the US dollar and regulated in Asia, the Hong Kong-based company said.
• All reserves will be held in segregated accounts at regulated financial institutions.
• The FDUSD stablecoin will launch on the BNB Smart Chain.

First Digital, a Hong Kong-based qualified custodian and registered trust company, has launched a new stablecoin First Digital USD (FDUSD).

The USD-pegged stablecoin will be backed 1:1 with the US dollar reserves and issued by First Digital subsidiary FD121 Limited. The cash or highly liquid reserves will be held in segregated accounts at regulated financial institutions across Asia. 

There will be no co-mingling of users’ funds with the other assets of First Digital Trust, the company noted. 

FDUSD to launch on BNB Smart Chain

FDUSD is said to be a programmable stablecoin and is set to launch on the BNB Smart Chain. It will be capable of executing financial contracts, escrow services, and insurance, all without intermediaries, the company said in a press release on May 31.

Vincent Chok, CEO of First Digital, said: 

“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.”

He added that First Digital commits to regulatory compliance, with transparency and robust oversight key to building trust within the stablecoin industry.

FDUSD’s entry into the market comes at a time the crypto industry has welcomed Hong Kong’s regulatory framework around the offering of crypto trading to retail investors.

As CoinJournal covered recently, the administrative region’s crypto guidelines come into effect as from June 1.  A host of platforms, including Huobi and CoinEx have announced new crypto trading platforms for Hong Kong.