Hong Kong-based qualified custodian and trust company First Digital Group announced the launch of its First Digital USD (FDUSD) US dollar-pegged stablecoin on June 1. The new stablecoin is programmable, described as capable of executing contracts, unintermediated escrow services and insurance .It will run on the BNB smart chain.
FDUSD is issued by First Digital Labs, a subsidiary of First Digital Trust, a digital asset custodian regulated by the Hong Kong Trustee Ordinance. By law, FDUSD will be backed one-to-one by US dollar reserves or highly liquid, high-quality assets held by regulated Asian financial institutions that cannot be mixed with other First Digital assets. First Digital CEO Vincent Chok said in a statement:
"First Digital is fully committed to complying with regulations, setting new standards for legality in the field." Additionally, the company pledged to "ensure full compliance with current and future applicable laws and regulations" and "participate in shaping its development, including sha ping the future of any regulatory regime to which FDUSD and/or First Digital may fall within the foreseeable future." The stablecoin will be convertible into USD. The launch of FDUSD coincided with the first day of retail cryptocurrency trading in Hong Kong under new regulatory guidelines , which led to a rapid increase in cryptocurrency-related activities in the administrative region, with multiple companies applying to open their trading platforms.
Additionally, the Hong Kong Monetary Authority launched the e-HKD central bank digital currency pilot project in May, with the participation of 16 companies from the financial payments and technology sectors.
