Huobi Lists Four ‘Regulated’ Stablecoins Vying for Tether’s Crown
Huobi Global is set to list four new stablecoins, namely Paxos Standard (PAX), Gemini Dollar (GUSD), TrueUSD (TUSD), and USDCoin (USDC) later this week. In an announcement on its website, the cryptocurrency exchange revealed that the four new assets will go live on Oct. 19.
Huobi’s New Listings
PAX, a newly launched digital asset is dollar-pegged, issued by Paxos Trust, and regulated by the New York State Department of Financial Services. Participants are able to trade with USD-endorsed and USD-denominated assets under the supervision of the NYSDFS.
GUSD, which claims to be the worlds’ first regulated stablecoin, was issued recently by the Cameron and Tyler Winklevoss-owned Gemini exchange, also under NYDFS supervision. As with most other major fiat stablecoins, each GUSD token is backed by $1.00 in hard currency.
TUSD is a collateralized, dollar-backed stablecoin trusted by multiple banking partners, while Circle’s USDC token allows eligible financial institutions join through its open membership, and it offers financial solutions that seek to resolve current crypto market problems.
Tether Faces More Competition
Huobi, the fourth-largest cryptocurrency trading platform, also hosts Tether’s USDT token (aka tether), which is also a U.S. dollar-pegged stablecoin. Tether, the token’s developers have claimed, is fully-backed by currency reserves, though it was trading 3.5 percent lower than its supposed value at $0.965 as recently as yesterday. It fell to around 93 cents at one point during the day but is now trading near $0.98. Tether Limited, the company behind it, has been in the spotlight concerning its claim of holding enough USD reserves to back the tether tokens in circulation.
CCN.com reported recently that tether lost its USD peg in a flurry of market activity, falling as low as $0.85 on one exchange amidst sustained negative market sentiment toward the stablecoin lodestar. Though it still dominates a reported 98 percent of daily stablecoin trading volume, a series of new entrants into the stablecoin arena over the past few week have put pressure on market sentiment toward it.
Earlier, OKEx, another top major crypto exchange, announced the listing of USDC, GUSD, TUSD, and PAX as the four stablecoin upstarts prepare to do battle with USDT.
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