Binance CEO “CZ” On First Digital USD (FDUSD) Stablecoin Support On Exchange

Binance CEO Changpeng “CZ” Zhao on Thursday responded to First Digital USD (FDUSD) stablecoin launch by Hong Kong-headquartered custodian and trust company First Digital. The move comes as Hong Kong launches a new crypto regulatory regime on June 1 in an effort to become a primary crypto hub in the region.

The First Digital USD (FDUSD) could become a major stablecoin on Binance as the crypto exchange searches for a stablecoin after US regulators crackdown Paxos-issued Binance USD (BUSD) in February.

Will Binance Support First Digital USD (FDUSD) Stablecoin?

Binance CEO “CZ” took to Twitter on June 1 to share the existing news of crypto custodian First Digital launching USD-pegged stablecoin FDUSD on 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, 2023

As the First Digital USD (FDUSD) stablecoin launched on BNB, Crypto Twitter went on to ask Binance CEO whether the exchange will support and list the new stablecoin. He said:

“We don’t talk about “will/will not”. Just follow our official announcements.”

First Digital USD (FDUSD) issued by First Digital Trust is 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 company is also in discussion with all major exchanges for a potential listing.

“The launch of this stablecoin represents a major stride forward in our mission to provide a secure and efficient digital currency that can be seamlessly integrated into everyday transactions. Going forward, investors, retail and institutional will be looking for predictability, which is why FDUSD was conceptualised,” said Vincent Chok, CEO of First Digital.

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Hong Kong Securities & Futures Commission (SFC) kicked off its licensing regime today, allowing registered crypto exchanges and firms to offer digital asset trading and other services to institutional and retail investors. However, retail investors won’t be allowed to trade stablecoins pending Hong Kong Monetary Authority’s (HKMA) regulations on stablecoins.

Interestingly, First Digital Trust issued First Digital USD (FDUSD) could become a factor in solving issues of stablecoins backed by high-quality reserves and safety.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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