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

The Hong Kong Monetary Authority (HKMA) will consult on legislation to regulate stablecoin issuers until the end of this month. Several financial institutions are preparing to submit applications and participate in the sandbox. First Digital Group issued the USD stablecoin FDUSD in Hong Kong last year, which is now traded on four virtual asset platforms with a daily trading volume of over $6 billion. Vincent Chok, CEO of First Digital Trust, expects to submit an application when the regulatory sandbox accepts applications at the end of the month. Currently, the stablecoin is mainly used for virtual asset trading and will be used for payments in the future. If licensed, they will study the issuance of HKD and other currency stablecoins. Chok stated that FDUSD is a B2B model and is not sold to retail customers, but to OTC trading companies and market makers.