First Digital, a Hong Kong-based trust and qualified custodian company, has just launched a new US dollar-linked stablecoin and regulated in Asia.
The cryptocurrency, dubbed "First Digital USD," or FDUSD, will be backed one-to-one by a US dollar or equivalent fair value asset. In addition, reserves will be held in segregated accounts at institutions in Asia.
The stablecoin is programmable and capable of enabling the execution of financial contracts, custodial services and insurance without intermediaries.
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According to the statement shared by the company:
"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."
The company has added:
"Stablecoins provide increased stability, a form of remittance, a hedge against central bank policymakers who seek to influence their domestic currencies."