Singapore-based cryptocurrency exchange Huobi has reached an agreement with Paxos and Stable Universal to launch a new US dollar-backed stablecoin, which corresponds to the ERC-20 token standard but maintains the same ticker symbol ‘HUSD.’
Huobi already has an ‘all-in-one stablecoin’ wrapper called HUSD which supports four US-regulated stablecoins: Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollar (GUSD). Notably, Tether (USDT) has been left out.
The partnership with its backed startup Stable Universal presupposes the issuance of HUSD tokens, pegged 1:1 to the US dollar, with regulated custodian Paxos Trust acting to provide Anti-Money Laundering and Know Your Customer compliance, as well as holding the fiat deposits in reserve.
The Nevada trust company already provides custody for Huobi’s fiat-crypto venue and is looking to facilitate clearing and settlement of OTC block trades. However, Prime Trust is also managing the escrow accounts holding collateral for competitor stablecoins.
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HUSD will first be listed by Huobi
Adoption of HUSD will begin with listing by Huobi Global, the fourth largest crypto exchange by 24-hour trading volume, but is intended to land at other exchanges, wallets, and cryptocurrency platforms.
Huobi, which recently announced a rebranding initiative with its US strategic partner, promoted HUSD as helping its clients save costs when switching between stablecoins and eliminate the need to choose between multiple coins.
Paxos co-founder Richmond Teo said “We are proud to now offer trust-as-a-service to power HUSD Token, a new stablecoin for Huobi Global. This is a new model that allows other innovators to create safe, trusted and fully-backed solutions that support wider crypto-market adoption for cash and assets using our unique regulated status.”
Frank Zhang, CEO of Stable Universal, added, “We’re excited that Huobi will list HUSD Token, allowing us to build liquidity quickly with their massive customer base. Combined with the sterling reputation of Paxos, we are offering a product with the highest level of oversight and protection.”