First Digital unveils USD stablecoin in response to new Hong Kong crypto regulations.

First Digital Group has announced the launch of a USD stablecoin, FDUSD. The stablecoin will be issued on Ethereum and BNB and First Digital is currently in talks with major exchanges for a listing. FDUSD is backed by high-quality reserves of cash and cash equivalents held in regulated financial institutions across Asia. The stablecoin will be issued by First Digital Trust, a trust company that is registered under Hong Kong’s Trust Ordinance. This ordinance requires all reserves to be kept in segregated accounts to prevent asset co-mingling. Vincent Chok, CEO of First Digital, said that the launch of this stablecoin is a significant step forward in their mission to provide a secure and efficient digital currency that can be easily integrated into everyday transactions. However, the stablecoin won’t be available to retail users in Hong Kong due to regulatory restrictions. Hong Kong’s Monetary Authority and financial regulators are currently considering new regulations for stablecoins, which may require local incorporation, real-world asset backing, and separate operations for issuers and virtual asset exchanges. It is unclear when these regulations will come into effect. The article was edited by James Rubin.

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