Binance CEO “CZ” responds to support of the new First Digital USD (FDUSD) Stablecoin amidst Hong Kong pressure.
ON THURSDAY, Binance CEO Changpeng “CZ” Zhao responded to the launch of First Digital USD (FDUSD) by Hong Kong-based custodian and trust company First Digital. The move comes as Hong Kong introduces a new crypto regulatory framework on 1 June to become the region’s primary crypto hub.
The First Digital USD (FDUSD) may become a prominent stablecoin on Binance, as the crypto exchange searches for a stablecoin following US regulators’ February crackdown on Paxos-issued Binance USD (BUSD).
Will Binance support stablecoin’s First Digital USD?
On June 1, Binance CEO CZ utilized Twitter to announce that First Digital, a cryptocurrency custodian, has launched the FDUSD stablecoin pegged to the US dollar on both the BNB Smart Chain and Ethereum.
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, 2023When the First Digital USD (FDUSD) stablecoin was introduced on the BNB platform, members of Crypto Twitter inquired whether Binance would endorse and include the new stablecoin in its listings. In response to the queries, the CEO of Binance stated:
We don’t talk about “will/will not”. Just follow our official announcements.
First Digital USD (FDUSD) issued by First Digital Trust is supported on a 1:1 basis by the US dollar held in the accounts of Asian-regulated financial institutions. Additionally, the company is discussing a possible listing with all leading exchanges.
“The launch of this stablecoin represents a significant step forward in our objective to provide a secure and efficient digital currency that can be integrated seamlessly into everyday transactions. In the future, retail and institutional investors will seek predictability, which is why FDUSD was conceived, according to Vincent Chok, CEO of First Digital.
Today, the Hong Kong Securities & Futures Commission (SFC) launched its licensing regime, allowing registered crypto exchanges and companies to offer digital asset trading and other services to institutional and retail investors. However, retail investors will be permitted to trade stablecoins once the Hong Kong Monetary Authority (HKMA) enacts stablecoin regulations.
First Digital Trust’s (FDUSD) could play a role in resolving problems with stablecoins high quality guaranteed reserves and security.
