Welcome to World Ledger. I am Coco. This is my first video post on Substack.
I sit down with Devere Bryan, Group General Manager of First Digital, the company behind the FDUSD stablecoin.
FDUSD was launched in Hong Kong in mid-2023. Its partnership with Binance has been crucial in putting it on the fast track and today its market cap stands at $1.4 billion.
The collaboration between FDUSD and Binance reminds me of Circle and Coinbase. We discuss how important Binance has been to FDUSD’s growth, while also noting that, similar to Circle, First Digital fully understands the need to diversify and explore additional distribution channels and growth opportunities.
Currently, the majority of stablecoin utility (about 70%) comes from trading crypto on exchanges. However, off-exchange use cases are emerging in developing countries and regions such as the Philippines and Latin America.
For example, overseas Filipino workers (OFWs) can use the local exchange Coins.ph, which offers a one-stop solution for crypto trading, money remittance, and a peso-pegged stablecoin (PHPC, approved by the central bank). USD-pegged stablecoins such as FDUSD play a similar role to traditional remittance companies.
Devere also points out another fast-growing off-exchange use case: payroll services for overseas talent. People working remotely from countries with high inflation and unstable currencies welcome dollar-pegged stablecoin payments.
We talk about Hong Kong’s stablecoin sandbox and the stablecoin bill. Devere explains why First Digital moved its stablecoin business from Hong Kong to the BVI. He shares why running a stablecoin is a battleground, what keeps him up at night, and where he sees the next growth opportunities.
All in all, stablecoins are still in their early days. Even USDT’s market cap is only around $165 billion. In five years, the landscape could look dramatically different.
During our chat, I had to ask about FDUSD’s temporary depeg accident last April.
Follow Devere Bryan on LinkedIn and feel free to reach out to him.
Hope you enjoy our conversation!
Timestamps:
(00:00) - Opening Remarks
(00:54) - Brief Introduction to Genesis of First Digital (FD)
(03:23) - Hong Kong as a former Launchpad for Crypto Businesses
(04:13) - Partnership between FDUSD and Binance
(06:14) - FDUSD’s Asia Focus
(08:07) - Promising Asian Markets and Emerging Utility for stablecoins, Case Study - Coins.ph
(13:22) - Current Utility of stablecoin at This Stage
(17:22) - FDUSD's Brief Depeg in April and How FD Handled it
(23:04) - Hong Kong Sandbox, Stablecoin Bill and FD’s Decision
(30:34) - Challenges in Operating Stablecoins
(34:23) - Is Stablecoin Market Winner-Take-All
(36:44) - Ways to Diversify Stablecoin Revenue
(41:12) - How FD Identifies Growth Opportunities and Diversifies
(45:04) - Dominance of Dollar-pegged Stablecoins
(47:20) - GENIUS and its Impact on BVI, Cayman, Cook Islands, ADGM of Abu Dhabi
(49:12) - Closing Remarks
I recommend two of my previous interviews which are relevant to this one - one with M0 Co-founder/CEO Luca Prosperi, and the other with Silicon Valley Bank’s Former CEO Ken Wilcox.
- Until next time,
Coco
I am Coco Kee, author and host of World Ledger with Coco Kee newsletter and podcast, a rebrand from BlockchainAsia, the Co-founder of Kee Global Advisors, and a dog lover with a Goldendoodle Lucy.
Follow me on LinkedIn | X or email me: worldledger@substack.com
World Ledger with Coco Kee podcast is available on Substack Podcast and most, if not all, podcast platforms, such as Apple Podcasts, YouTube Podcast, Amazon Music Podcasters, Overcast, CastBox, iHeart Podcasts, Goodpods, and more.
The content in the newsletter and podcast is for informational and educational purposes only, represents personal views and opinions, and does not constitute investment advice or recommendations.
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