First Digital Group announced today that it’s launching a USD stablecoin, FDUSD. First Digital says FDUSD is backed by “high-quality reserves” of cash and cash equivalents in regulated financial institutions around Asia, and will be issued by First Digital Trust, a trust company registered under Hong Kong’s Trust Ordinance. Part of the requirements of Hong Kong’s Trust Ordinance is to keep all reserves in segregated accounts, which prevents co-mingling of assets.
“The launch of this stable coin represents a major stride forward in our mission to provide a secure and efficient digital currency that can be seamlessly integrated into everyday transactions,” Vincent Chok, CEO of First Digital, said in a release. But as the stable coin launches, it won’t be available to retail users in Hong Kong. Regulators in Hong Kong have said that stable coins should not be allowed for public trading by retail investors until the proposed rules for this asset class are officially implemented in the territory.