First Digital launches stablecoin as Hong Kong rolls out crypto regulations

The Hong Kong First Digital has unveiled FDUSDa new stablecoin backed by US dollar but regulated at Asia. The announcement comes at a time when new rules on the crypto go into effect today at Hong Kong.

First Digital Trusta Hong Kong-based company specializing in cryptocurrency custody, has announced the launch of a stablecoin called FDUSD.

Issued more precisely by FD121 Limiteda subsidiary of First Digital, on Ethereum and the Binance blockchain. greenback with a ratio of 1:1. Its reserves are held in accounts at several Asian financial institutions.

First Digital Trust Limited, as a trust company registered under the Trustee Ordinance, is mandated to hold all FDUSD reserves in separate accounts and in cash or highly liquid assets. This structure ensures that FDUSD holders can remain confident in the 1:1 backing of the tokens and the ability to redeem their stablecoins,” says the company in a statement.

This Thursday, Hong Kong rolls out its new regulations for the digital assets sector. Announced in the fall of 2022, it aims to frame and encourage the development of crypto in the city-state by offering, among other things, a licensing system for platforms.

Earlier this year, Hong Kong’s Secretary to the Treasury reported that the Monetary Authority was also working on rules for stablecoins with the ambition of implementing them next year.

Since the collapse of the TerraUSD stablecoin, regulators around the world have been buzzing around the regulation of this type of token.

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