New Trade Guidelines Bring FDUSD Stablecoin To HK
First Digital, a Hong Kong-based qualified custodian and trust company, has launched First Digital USD (FDUSD), a stablecoin pegged to the US dollar but regulated in Asia. The unveiling coincides with Hong Kong’s implementation of a new regulatory framework for digital assets.
The coin, according to a press release, aims to provide a stable and reliable digital currency during the volatile crypto market. FDUSD tokens are intended to be redeemable for US dollars or equivalent assets of fair value on a 1:1 basis, backed by high-quality reserves of cash and cash equivalents.
Furthermore, First Digital claims that as a company registered under Hong Kong’s Trust Ordinance, they are required to keep all FDUSD reserves in segregated accounts at Asian-based regulated financial institutions. This will prevent any mingling of FDUSD reserves with First Digital Trust Limited’s other assets.
First Digital also stated that the stablecoin is programmable, allowing for the execution of various financial contracts, escrow services, and insurance without the use of intermediaries.
(With inputs from Shikha Singh)
You need to login in order to Like
