First Digital plans to participate in Hong Kong Monetary Authority’s stablecoin sandbox

The Hong Kong Monetary Authority’s consultation on legislative supervision of stablecoin issuers ends at the end of this month, and many financial institutions are preparing to submit applications and participate in the sandbox. Among them, First Digital Group issued the US dollar stable currency FDUSD in Hong Kong last year. It is now traded on 4 virtual asset platforms, with daily trading volume once exceeding US$6 billion. Vincent Chok, chief executive of First Digital Trust, expects applications to be accepted for the regulatory sandbox at the end of the month and application documents will be submitted at that time. At present, the stable currency is mainly used for virtual asset transactions and will be used for payment in the future. If it is licensed, it will study the issuance of stable coins in Hong Kong dollars and other currencies. Chok said in an interview that FDUSD is a B2B model and does not sell to retail investors. Its customers are over-the-counter trading companies, market makers, etc. (Economic Journal)