Another stablecoin has joined the market. This time, the popular exchange Huobi, decided to launch its own stablecoin known as HUSD. The information has been released some time ago by Huobi in a blog post. The new HUSD will be exchanged for PAX, USDC, TUSD and GUSD.
Huobi New HUSD
In order to meet the demand from the market, Huobi Global launched an ‘all-in-one’ stablecoin. During the last couple of months, we have seen how different stablecoins entered the market. Circle created its USDC coin. The Gemini Cryptocurrency exchange did the same with the Gemini Dollar (GUSD). And other popular stablecoins are Tether (USDT), Paxos Standard (PAX) and TrueUSD (TUSD).
All of them promise to be different and compliant with regulatory requirements. However, they are not all listed in various exchanges, and interoperability between them is still a problem. The new HUSD targets multiple stablecoins. It eliminates the need to choose between different stablecoins and it saves costs to switch between them.
The solution proposed by Huobi is innovative. There is no other similar product available in the market. Users can deposit any stablecoin in Huboi and they will be managing HUSD. If they want to withdraw their stablecoin, users will be able to choose between PAX, USDC, TUSD and GUSD.
The official release reads as follows:
“When you deposit any kind of stablecoins, they will be shown as HUSD in your account. You may withdraw any kind of stablecoin; when the amount of a particular stablecoin is not sufficient in your account balance, you may withdraw other stablecoins in which you have excess balances in.”
In the future, Huobi says that they will be analysing the market if new stablecoins appear. This would clearly improve the services provided by the new HUSD. The company informs that they will be evaluating existing stablecoins in the HUSD system on a real-time basis. If the company finds that there are inconsistencies they will delist that specific stablecoin.
Deposits of PAX, TUSD, USDC and GUST started on October 19. USDT/HUSD trading pair will be listed at 10:100 AM on October 22nd. Other services will also be available during the following days and weeks.
It is important to remember that Tether has been involved in different controversies regarding its funds. Some individuals said that it did not have the necessary funds to back all the USDT in circulation. However, Michael Novogratz said that he thinks Tether has a dollar for every USDT and that they did actively trade it.
Id like to put context to these quotes as the last thing I want to do is spread FUD. I said I thought tether has a dollar for every tether and that we actively traded it. The fact that almost $700mm has been redeemed in an orderly fashion is important. https://t.co/SrMa6uPpr6
— Michael Novogratz (@novogratz) October 19, 2018
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.