First Digital launches new stablecoin linked to the U.S. dollar

According to a press release, Hong Kong-based custodian company First Digital has launched a new stablecoin linked to the U.S. dollar. The stablecoin (FDUSD) is programmable and can enable the execution of financial contracts, escrow services and insurance without intermediaries.

Under the requirements of the Trust Regulations, First Digital must keep all reserves in segregated accounts, which prevents commingling of assets. "The launch of this stablecoin represents significant progress in our mission to offer a secure and efficient digital currency that can be seamlessly integrated into everyday transactions," said First Digital's CEO.

There is already a corresponding listing on CoinMarketCap. Information about the tokenomics of the new Hong Kong stablecoin is not known at the time of writing. Retail investors in Hong Kong can trade major cryptocurrencies as of today, June 1, thanks to the new regulations. However, no exchanges have been approved yet.

While Hong Kong is opening up to the crypto sector with clear legislation, the direction of U.S. regulators poses a further threat to the sector. Some U.S. crypto companies are therefore already considering a move.