Hong Kong based stablecoin FDUSD goes live on Binance

Hong Kong-based First Digital Group announced on July 26 that its stablecoin, First Digital USD (FDUSD), has been listed on Binance, the world’s largest cryptocurrency exchange by volume.

As one of Asia’s leading qualified custodians, First Digital Trust is part of the First Digital Group, which includes FD121, the entity under which FDUSD has been issued.

The FDUSD is backed 1:1 with “high-quality cash and cash equivalent reserves,” according to a press release, and it is redeemable 1:1 for an equal value in U.S. dollars. These reserves are held in regulated financial institutions’ segregated accounts and monitored and audited by independent third parties.

FDUSD aims to offer a “transparent, reliable, and trusted alternative” to conventional assets amid increasing volatility in the market.

FDUSD Whitepaper

The FDUSD whitepaper emphasizes a commitment to fostering strong collaboration with regulatory authorities. It states that compliance with applicable regulations is a top priority and aims to actively engage with regulators to ensure understanding and adherence to evolving legislation. Compliance is noted as a guiding principle in navigating the regulatory environment.

First Digital, the parent company of the issuer FD121, is described as Asia’s leading multi-faceted trust partner bridging traditional and digital finance. It has over 3 decades of experience and provides services including structuring, custody, payroll, escrow, and administration. The whitepaper further claims First Digital helps “future-proof” partners through innovative trustee services and expertise. It was also named an “Emerging Giant in Asia” by KPMG and HSBC in 2022.

FD121 Limited is a subsidiary of First Digital, specifically established to issue stablecoins allowing FDUSD to “leverage the resources, experience, and reputation” of the broader First Digital group.

Ultimately, FDUSD is designed as a programmable digital asset, offering efficiency enhancements by interacting directly with “financial smart contracts, escrow services, and insurance without intermediaries.” FD121 asserts that this feature reduces the cost of financial transactions and bolsters security.

Vincent Chok, CEO of First Digital Trust, commented,

“Recent events have shown that conventional assets are not immune to the risk and volatility posed by external events. FDUSD offers a transparent, reliable, and trusted alternative that provides the predictability corporates and investors…