First Digital, a Hong Kong-based fintech company, has announced the launch of a new Asia-regulated stablecoin called First Digital USD (FDUSD).
According to the announcement, the new stablecoin, called FDUSD, will be backed 1:1 with USD or an asset of similar value and held in the accounts of authorized financial institutions in Asia. FDUSD will be backed by “high-quality reserves of cash and other assets of equal value” in regulated financial institutions across Asia.
In addition, the issuer of FDUSD – First Digital Labs is also committed to working closely with local and international regulatory authorities to ensure full compliance with current and future laws and regulations.
FDUSD provides users with a reliable digital currency that reduces volatility in the cryptocurrency market while improving the efficiency of financial operations by cutting transaction fees and providing high-quality transactions. Translating faster, safer. According to First Digital, stablecoins are programmable and capable of enabling financial transactions, escrow services, and insurance without the need for a middleman.
First Digital CEO Vincent Chok stated:
“The launch of this stablecoin represents a huge step forward in our mission to provide a secure and efficient digital currency that can be seamlessly integrated into everyday transactions. Transparency. and strong oversight is paramount in building trust in stablecoins and in turn adopting this innovative blockchain technology, especially at a time when stability in the traditional financial system is uncertain. ”
Ahead of the news that a new stablecoin will be released, CEO CZ of crypto exchange Binance posted a tweet regarding this cryptocurrency. According to what CEO CZ revealed, FDUSD will be built on BNB Smart Chain (BSC).
First Digital’s announcement of the stablecoin release coincides with Hong Kong’s opening for retail transactions. However, this new stablecoin will most likely violate the strict listing criteria of the Hong Kong Securities Commission (SFC) when the Commission previously said it would not support stablecoins to operate in this region.