TrustToken Inc., the company behind the TrueUSD (TUSD) stablecoin has launched a new digital token pegged one-to-one with the Hong Kong dollar, reports Crowdfund Insider, June 24, 2019.
TrustToken Enters the Asian Waters
In a bid to tap into the lucrative Asian digital currencies space, TrustToken has launched the world’s first digital token pegged to an Asian currency called TrueHKD (THKD).
TrustToken has also inked a partnership with Hong Kong-based crypto custodial venture, Legacy Trust, to hold the fiat reserves that collateralize THKD making it the fintech startup’s first such partnership outside the U.S.
Per sources close to the matter, the newly launched Hong Kong dollar-pegged stablecoin can be purchased by any Hong Kong resident or anyone holding the fiat from TrustToken’s mobile or desktop app. Notably, TrueHKD holders will also have direct access to TrustToken’s large network of exchanges, partners, and crypto wallets.
Interestingly, the launch of a Hong Kong dollar-pegged stablecoin comes at a time when the autonomous Chinese state is in the midst of an internal turmoil brought about by the introduction of a controversial Chinese extradition law. As a result, an increasing number of Hong Kong residents have flocked towards cryptocurrencies and other stores of value that would keep their digital identity to a bare minimum.
Jai An, CEO of TrustToken, commented on the development saying:
“We are thrilled to be working with Legacy Trust to expand into the Asian market. Our goal is to offer traders better solutions to securely move between local fiat currencies and the global blockchain markets and applications.”
“Legacy Trust has built a reputation as one of the world’s most trusted digital asset custodians – we are excited to have them as a partner to take the first major step in expanding our global banking network for our users.”
The Rising Popularity of Stablecoins
The launch of TrueHKD expands the startup’s catalog of fiat-backed digital tokens which includes stablecoins backed by U.S. dollars, Canadian dollars, Australian dollars, and pounds sterling.
As previously reported by BTCManager on May 23, 2019, stablecoin usage among crypto enthusiasts has been on a constant rise. The usage of fiat-pegged digital tokens until now in 2019 has already surpassed the total volume traded through the entirety of 2018.