Relying on the crypto-friendly environment of Hong Kong, the First Digital Group has released a new stablecoin which is pegged to the USD.
Hong Kong continues to make headlines on the crypto front, with new initiatives being taken in the region frequently for the betterment of the crypto industry. The latest is the launch of a new stablecoin pegged to the USD. The First Digital Group, a leading trust and custodian company in Hong Kong, launched the USD-backed stablecoin.
In a press statement, the First Digital Group said that the new stablecoin they released should be pegged to the USD on a 1:1 basis, supported by strong regulatory regimes in Asia. The new stablecoin, First Digital USD (FDUSD), would be aimed at controlling volatility in the crypto market and achieving affordable and secure transactions.
The CEO of First Digital, Vincent Chok, said, “I am delighted to emphasize the significance of this milestone as we introduce FDUSD to the world. 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.”
The press release also said that sufficient liquidity and reserves would be maintained by keeping all FDUSD reserves in separate accounts in either highly liquid assets or cash, thus, maintaining the 1:1 ratio to the USD.
Through the move, the First Digital Group also said users could easily redeem their deposits whenever they want to, owing to their highly liquid reserves.