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- 1 First Digital Group launches its new stablecoin FDUSD, backed with U.S. dollars.
- 2 The stablecoin intends to offer increased stability in the current financial system.
Stablecoin FDUSD pegged with the U.S. dollar has been launched. It is initiated by First Digital which is headquartered in Hong Kong. First Digital’s sibling firm, FD121 Limited will be issuing the U.S. dollar pegged digital asset.
FDUSD is intended to reduce the crypto market volatility by providing the benefits of lowering the transaction cost and offering faster and more secure transactions.
First Digital says that the USD stablecoin reserves will be kept in separate accounts. There will be no mingling of FDUSD reserves with other assets of the company. This structure will ensure that stablecoin holders can redeem or back up their tokens.
FDUSD Can Be Redeemed Easily
One of the advantages of the stablecoin is that it can be redeemed easily, and it can be pegged with cash or cash equivalents reserves. It means that users can retrieve FDUSD tokens with equal amounts of dollars. This will provide safety to the stablecoin reserves.
Vincent Chok, CEO of First Digital, commented that he is delighted with the launch of FDUSD. They are one step forward to providing a secure and stable digital currency that can be easily integrated into everyday transactions. The adoption of blockchain technology and transparency will help in building trust in stablecoins.
In addition, he said the Whitepaper discloses that First Digital will work closely with the local and overseas authorities to confirm full cooperation with current and future relevant laws and regulations.
Furthermore, he added that the company will develop stability and trust in the digital currency market by maintaining cooperative relationships with the government and financial organizations at home and abroad.
USD Stablecoin in Discussion with Major Exchanges
The FDUSD stablecoin is issued on Ethereum and BNB. The company is also in discussion with all major exchanges for a listing. But, the stablecoin will not be available to retail users in Hong Kong.
The regulators in Hong Kong have mentioned that stablecoins are not allowed for public trading by retail investors. According to the regulatory framework of the Hong Kong Monetary Authority (HKMA) and financial regulators, as long as the stablecoin complies with the licensing and regulatory requirements, it can be issued in authorized and non-authorized institutions.
First Digital Trust Limited is a full custodian and licensed trust company. It was established in 2019. With the launch of stablecoin, it is bridging the gap between the traditional and digital financial worlds.
The company’s native stablecoin backed with advanced technology is aimed to provide a safe and reliable alternative. It is programmable with codes that can be written, and hence automatically execute the transactions. Overall, it is expected to bring a positive impact on the world of finance.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
