First Digital to Participate in HKMA's Stablecoin Sandbox

According to Hong Kong Economic Journal, the HKMA's consultation on legislation to regulate stablecoin issuers closes at the end of this month, and a number of financial institutions are preparing to submit applications and participate in the sandbox. Among them, First Digital Group issued the US dollar stablecoin FDUSD in Hong Kong last year, which is now traded on four virtual asset platforms, with a daily turnover of more than US$6 billion at one point. Vincent Chok, chief executive officer of First Digital Trust, expects to submit application documents for the regulatory sandbox by the end of the month. The stablecoin is currently used mainly for virtual asset trading and will be used for payment purposes in the future, and if it is licensed, it will study the issuance of stablecoins in Hong Kong dollars and other currencies. Chok said in an interview, FDUSD is a B2B model, not sold to retail investors, customers for over-the-counter trading companies, market makers and so on.