For some, perhaps the only thing better than a stablecoin is a universal stablecoin – one that’s usable wherever stablecoins are accepted. That’s what Huobi has launched in its new HUSD token, which supports four major stablecoins: Gemini Dollar, Paxos Standard, USDCoin, and True USD. The function is simple enough – by holding HUSD, users are able to instantly have an equal value of any of the above.
A small event was held in New York this week called the Stablecoin New York Conference, and Huobi General Counsel Joshua Goodbody spoke at moderate length about his firm’s efforts.
We believe the recent developments of stablecoins are positive for the industry and Huobi decided to support these developments proactively by launching HUSD. HUSD acts as a stablecoin aggregator. We provide the ability to deposit any of the four supported coins as HUSD and receive a 1:1 balance of HUSD which can be stored as well as traded against six pairs on Huobi Global. Users are also able to withdraw HUSD as any of the four applicable stablecoins
It seems Goodbody misspoke – according to the actual exchange at time of writing, the available pairs for HUSD were BTC, ETH, EOS, and USDT. It’s interesting that USDT is traded against HUSD, but not part of it. This is the second stablecoin effort that has decided to forego integration of USDT, which is the first pegged token.
Nevertheless, HUSD reduces trading fees for traders who are dealing with several types of markets. There is no exchange that lists every token and opportunity all of the time, so the movement between exchanges is necessary. Binance appears to be engaged in a similar effort to HUSD, but has yet to announce full details on it.
HUSD itself is not a token on any blockchain, but merely a product within the exchange, so it cannot be withdrawn or subsequently traded. When those products arise, it will begin to look like the derivatives market on the surface – although perhaps the contents will have a greater constitution.
The addition of TrueUSD, which is the first token on the Trust Token platform that has yet to launch, is an interesting move. To date, Huobi is one of the few to vocally support Trust Token in any way. The Trust Token platform aims for the tokenization of all real-world assets using “smart trust” contracts. It essentially enables anyone to offer stock in something they own. Its ICO has yet to launch, but True USD is very real in the interim and runs on the same software.
Featured image from Shutterstock..
Last modified: September 23, 2020 12:12 PM