Hong Kong’s First Digital Launches Stablecoin Amid New Laws

• Hong Kong recently introduced a clear legal framework for crypto businesses.
• The new ruling takes action on July 1st, 2023, and seeks to protect retail investors.
• First Digital-owned trust launches the $FDUSD stablecoin on Ethereum and BSC.

The First Digital crypto hedge fund launched a new stablecoin pegged to the United States Dollar. The $FDUSD stablecoin’s reserves are topped with cash, securities, and other “high-quality reserves,” which are regulated according to the new crypto-focused regulatory framework.

The new crypto legislation kicks in on the first summer day, meaning that Hong Kong’s Trust Ordinance requires the new FDUSD stablecoin to hold reserves in separate accounts to prevent the commingling of reserve funds. The stablecoin is compatible with Ethereum (ETH) and Binance Smart Chain (BSC).