As Hong Kong launches a new crypto regulatory regime on June 1, the city appears keen to establish itself as a primary crypto hub in the region. As part of this effort, the Hong Kong-headquartered custodian and trust company First Digital recently rolled out its First Digital USD (FDUSD) stablecoin. This has led to speculation as to whether major exchange Binance will support this new stablecoin.
Amid an intensified crackdown on Paxos-issued Binance USD (BUSD) by US regulators in February, the FDUSD could emerge as a big player on Binance. Binance CEO Changpeng “CZ” Zhao took to Twitter earlier this week, announcing that FDUSD launched on BNB Smart Chain and Ethereum. But when asked if Binance would support and list the new stablecoin, he neither confirmed nor denied the exchange’s intentions, simply saying to follow the company’s official announcements.
FDUSD, issued by First Digital Trust, is reportedly backed by cash or highly liquid assets on a 1:1 basis by the US dollar held in regulated financial institutions’ accounts in Asia. The firm is said to be in talks with all the major exchanges regarding a possible listing. Considering that investors are increasingly seeking predictability, FDUSD’s ability to provide “a secure and efficient digital currency seamlessly integrated into everyday transactions” could quickly catch on, says Vincent Chok, CEO of First Digital.
Notably, Hong Kong’s Securities & Futures Commission (SFC) has just started its licensing regime, allowing registered crypto exchanges and companies to offer digital asset trading and other services to both institutional and retail investors. However, retail investors will have to wait for Hong Kong Monetary Authority’s (HKMA) stablecoin regulations to trade them.
The introduction of safety-focused stablecoins like FDUSD, backed by high-quality reserves, could play a significant role in addressing regulatory concerns. As the regulatory landscape becomes increasingly stringent, it remains to be seen how Binance will respond and adapt to these changes while continuing its mission to become a leading crypto platform.
Source: Coingape
