The new stablecoin, FDUSD, aims to bring predictability and trust to the volatile market.
First Digital, a prominent financial company based in Hong Kong, has unveiled a new stablecoin called First Digital USD (FDUSD).
The stablecoin is designed to be backed on a 1:1 basis by either a US dollar or an asset of equivalent fair value. These reserves will be held in accounts of regulated financial institutions in Asia.
FDUSD will be issued by First Digital Trust, a trust company registered under Hong Kong’s Trustee Ordinance. As a company registered under the Trustee Ordinance, First Digital is “mandated” to keep all FDUSD reserves in segregated accounts in order to avoid the co-mingling of FSUSD with other assets of the company.
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According to the release, “this structure ensures that holders of FDUSD can remain confident in the 1:1 backing of the tokens and the ability to redeem their stablecoins.”
The release illuminated the potential of stablecoins to function as a hedge against central bank policy makers “who seek to influence their domestic currencies, and an economical form of accessing financial services at a time of heightened volatility in the current, global financial system”.
FDUSD will launch on the BNB smartchain and Ethereum.
Binance CEO Changpeng Zhao announced news of the stablecoin via a tweet this morning.
When asked if Binance will be listing FUSD, Zhao replied with an ambiguous: “We don’t talk about ‘will/will not’. Just follow our official announcements.”
First Digital CEO Vincent Chok said: “The launch of this stablecoin represents a major stride forward in our mission to provide a secure and efficient digital currency that can be seamlessly integrated into everyday transactions.”
He added: “Transparency and robust oversight are paramount in building trust in stablecoins and in turn the adoption of this innovative blockchain technology, especially at a time when stability in the traditional financial system is uncertain. Going forward, investors, retail and institutional will be looking for predictability, which is why FDUSD was conceptualised.”
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About First Digital
First Digital Trust Limited is a licensed trust company based in Hong Kong. Established in 2019, the company serves clients from around the world. It specializes in providing a wide range of trusted services, combining traditional and digital financial solutions. With over three decades of experience, First Digital Trust Limited offers innovative and personalized trustee services such as asset tokenization, custody, asset trading, and settlement.
They also provide various services including structuring, payroll management, escrow, and administration. In recognition of its achievements, First Digital was named one of the prominent Emerging Giants in Hong Kong in the ‘Emerging Giants in Asia Pacific’ Report 2022 by KPMG and HSBC.
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