HONG KONG, June 1, 2023 /PRNewswire/ — First Digital, Asia’s leading qualified custodian and registered trust company, headquartered in Hong Kong, is excited to announce the introduction of a new stablecoin, First Digital USD (“FDUSD”). Issued by FD121 Limited (under brand name “First Digital Labs”), the stablecoin is intended to be backed on a 1:1 basis by one U.S. dollar or asset of equivalent fair value, held in accounts of regulated financial institutions in Asia.
The launch of a new U.S. dollars pegged stablecoin offers diversification from the ones already in circulation and currently dominating the market. Stablecoins provide increased stability, a form of remittance, a hedge against central bank policymakers 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 be issued by FD121 Limited, being a subsidiary of the trust company, First Digital Limited. First Digital’s focus remains firmly on fostering transparency and trust. FDUSD offers users a reliable digital currency aimed at reducing volatility in the cryptocurrency market, enhancing the efficiency of financial transactions by lowering transaction costs, and offering faster, more secure transactions. FDUSD is a programmable stablecoin, capable of enabling the execution of financial contracts, escrow services, and insurance without intermediaries.
First Digital Trust Limited, as a trust company registered under the Trustee Ordinance (Cap. 29, Laws of Hong Kong), is mandated to safekeep all FDUSD reserves in segregated accounts (meaning, no co-mingling of FDUSD reserves with other assets of First Digital Trust Limited) and in cash or highly liquid assets. 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.
One of the key advantages of the new stablecoins is their redeemable nature. FDUSD is backed by high-quality reserves- cash and cash equivalents, meaning that users can redeem their FDUSD tokens for their equivalent value in U.S. dollars. This feature provides safety to the stablecoin reserves and users can trust that FDUSD is always 1:1 backed. This underscores First Digital’s commitment to operating in a transparent and secure manner, providing users with increased trust and confidence in the stability and legitimacy of the stablecoins.
Vincent Chok, CEO of First Digital, commented: “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. 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. First Digital is fully committed to regulatory compliance to set a new standard for legitimacy in the space.”
First Digital’s commitment to transparency ensures that every aspect of FDUSD, and any future stablecoins launched, will be open to scrutiny. First Digital Labs will work closely with local and overseas regulatory authorities to ensure full compliance with current and future applicable laws and regulations, and First Digital Labs will participate in the shaping of their evolution, including the shaping of any regulatory regimes that FDUSD and/or First Digital may fall under in the foreseeable future. By fostering a collaborative relationship with governmental bodies and financial institutions at home and abroad, we hope to establish a new standard for stability and trust in the digital currency space.
With this innovative stablecoin solution backed by advanced technology, the aim is to provide a safe and reliable alternative that brings peace of mind, whilst making a positive impact in the world of finance.
About First Digital
First Digital Trust Limited is a fully qualified custodian and licensed trust company, headquartered in Hong Kong, servicing an international client base. Established in 2019, First Digital is Asia’s forward thinking, multi-faceted trust partner, bridging the gap between the traditional and digital financial worlds and using technology to tokenize, custody, trade and settle assets.
With over three decades of experience, First Digital Trust Limited provides expertise and innovative solutions through a comprehensive and personalized suite of trustee services to help future-proof their partners. This includes structuring, custody, payroll, escrow, and administration services. First Digital was named one of the leading Emerging Giants of Hong Kong in KPMG and HSBC’s ‘Emerging Giants in Asia Pacific‘ Report 2022.
To learn more about First Digital and its regulated infrastructure and products, visit www.1stdigital.com
To learn more about First Digital’s newly launched stablecoin offering, visit firstdigitallabs.com