First Digital, a Hong Kong-based company, has announced the launch of a new stablecoin, FDUSD, which will be pegged to the value of the US dollar and operate under Asian regulations.
What is FDUSD?
FDUSD (First Digital USD) is a programmable stablecoin backed 1:1 by one US dollar or an equivalent fair-value asset, held in segregated accounts at Asian institutions.
FDUSD enables smart contract execution, escrow services, and insurance without intermediaries.
Fact:
Stablecoins like FDUSD provide increased stability, act as a means of remittance, and hedge against central bank policies affecting domestic currencies.
Regulatory Compliance and Industry Concerns
First Digital emphasizes its commitment to regulatory compliance and will work closely with local and overseas authorities to shape the future regulatory landscape for FDUSD and the company.
Regulatory uncertainties in the United States have raised concerns among industry players who fear the potential loss of the country’s leadership position in the crypto sector, with some speculating that crypto businesses may relocate to more crypto-friendly jurisdictions.
Example:
Coinbase CEO Brian Armstrong acknowledged Hong Kong’s emergence as a crypto hub, an unsurprising development given its crypto-friendly policies.
Global Expansion of Crypto Services
Circle, a digital financial technology firm, has applied for licenses in France to become a licensed Electronic Money Institution and a Digital Asset Service Provider, meeting the requirements of French regulators ACPR and AMF.
Societe Generale-FORGE in France has launched CoinVertible, a digital asset denominated in Euros, on the Ethereum blockchain.
This European expansion of crypto services demonstrates the global growth and acceptance of digital currencies.
Frequently Asked Questions
-
What are stablecoins?
Stablecoins are cryptocurrencies pegged to a stable asset, such as a fiat currency or a precious metal, to minimize price volatility.
-
What is the purpose of FDUSD?
FDUSD aims to provide stability, facilitate remittances, and hedge against currency fluctuations, particularly in Asia.
-
How is FDUSD regulated?
FDUSD will operate under the regulatory framework for digital assets in Hong Kong and collaborate with local and overseas authorities to ensure compliance.
Credit and copyright: BITboosters. All rights reserved.