Binance CEO Changpeng Zhao, commonly known as “CZ,” drew attention with a new statement. Hong Kong-based custody and trust firm First Digital has responded to the launch of the First Digital USD (FDUSD) stablecoin. This development attracted attention after Hong Kong implemented a new regulatory framework on 1 June. With this move, Hong Kong aims to establish itself as a leading crypto center in the region. Here are the details…
Binance CEO points to developments in Hong Kong
Changpeng Zhao conveyed the news that First Digital has launched the FDUSD stablecoin on both BNB Smart Chain and Ethereum, in a tweet today. As the news spread on Twitter, users asked if Binance would support the new stablecoin. Because they were wondering if the exchange would list this coin. In response to these questions, CZ declined to give a definitive answer. However, he stated that official announcements should be followed.
First Digital, a Hong Kong licensed trust company, launches a new USD pegged stablecoin (FDUSD), on #BNB Smart Chain.
— CZ 🔶 Binance (@cz_binance) June 1, 2023
https://twitter.com/cz_binance/status/16641376313100128
Issued by First Digital Trust, the FDUSD stablecoin is a US dollar pegged coin. Backed by cash or highly liquid assets on a 1:1 basis. These reserves are held in the accounts of financial institutions in Asia, thereby ensuring the stability of the stablecoin. Meanwhile, First Digital Trust is currently in talks with major exchanges for potential listings. It aims to make FDUSD a widely available crypto asset.
First Digital CEO Vincent Chok highlighted the role of FDUSD in facilitating secure and efficient digital transactions. Thus, he expressed his excitement at the launch of the FDUSD stablecoin. Chok noted that the predictability offered by FDUSD is in line with the growing demand for stable and reliable cryptocurrencies from both individual and institutional investors.
New era begins for cryptocurrencies in Hong Kong
Prior to the launch of the FDUSD stablecoin, the Hong Kong Securities and Futures Commission (SFC)’s move attracted attention. cryptocoin.com As we reported, the regulator has introduced a licensing regime that allows registered crypto exchanges and firms to offer crypto-asset trading and related services to institutional and individual investors. However, stablecoin trading by individual investors will be subject to regulations set by the Hong Kong Monetary Authority (HKMA).
So, is it possible that the FDUSD stablecoin has the potential to become a major player on Binance? The cryptocurrency exchange is seeking a reliable stablecoin after regulatory action against Binance USD (BUSD) issued by Paxos in February. While CZ declined to provide a direct response regarding Binance’s support for FDUSD, investors and the crypto community are eagerly awaiting official announcements from the exchange.
