Singapore-based cryptocurrency exchange Huobi is currently preparing the infrastructure to launch its own stablecoin in the first half of 2019, Cointelegraph reported quoting Huobi’s CFO in Singapore today.
The report didn’t reveal which currency the stablecoin will be pegged to, but the announcement comes in the midst of an explosion of new stablecoins, which are used as a proxy for physical money on many exchanges. Clients can also use stablecoins to cash out of digital assets more quickly than if they were to convert to dollars.
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.
Technically speaking, all deposits made by users using any of these four stablecoins are converted into HUSD. On the other hand, users are able to withdraw or exchange any stablecoin regardless of which one was deposited.
How Synthesis Bank Brings the Benefits of Investment Banking to BlockchainGo to article >>
Huobi, which recently announced a rebranding initiative with its US strategic partner, says that HUSD helps its clients save costs when switching between stablecoins and eliminate the need to choose between multiple coins.
Huobi is originally from China, but after overstaying its welcome there, it opened offices in Hong Kong, South Korea, and Singapore. Despite regulatory uncertainty, the firm has been making inroads into Canada and US with plans to open offices in Toronto and San Francisco.
In addition, Huobi has been expanding aggressively into other foreign markets, including setting up an office in London.
Acting as a sort of safe haven where crypto traders can park their assets in volatile markets, the explosion of stablecoins is seen by many as a step to further the adoption process of cryptocurrencies, as it would give users an introduction to the main benefits of blockchain technology without having to experience extreme market volatility.
Binance, the world’s largest cryptocurrency exchange by traded value, also continues to expand stablecoin options for its clients. The exchange has added many non-volatile coins to its platform over the past few weeks, most recently supporting Circle’s USDC.