Oct 23, 2018 at 13:48
Oct 23, 2018 at 16:42 UTC
Huobi, third-largest Singapore based cryptocurrency exchange in the world, recently launched a new “stablecoin solution” dubbed HUSD which will allow traders to convert between four UDS pegged stablecoins, as per the platform’s listing. A press release on October 19th elaborated that this stablecoin had been designed in such a way to make sure that users do not have to choose between different stablecoins, and aims at reducing transaction cost involved in switching between various different coins, and also eliminating the risk involved in investing in a single stablecoin.
AT the outset, HUSD has been designed to be compatible with Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollars (GUSD). Simply put the coin functions in such a way that when users deposit a stablecoin into their account, regardless of its type, it will be recorded and displayed as HUSD and when it can then be withdrawn as any of the four listed stablecoins. Huobi explained,
“For example, when you deposit 1 PAX, it will show as 1 HUSD in your account, and you can withdraw 1 TUSD (not considering transaction fees on the blockchain).”
There are a few very clear advantages of using HUSD, as claimed by the parent company. HUSD claims to be more convenient, safer and also promises to mitigate the drawbacks of holding stablecoins. It is to provide a safety cushion for its investors and protection against the asset class. The exchange also spoke about extending beyond their four USD-pegged stablecoins,
“We look forward to more stablecoins being involved in the HUSD system. Concurrently, we will evaluate the existing stablecoins in the HUSD system on a real-time basis, if the stablecoin doesn’t meet the corresponding risk control standard, we will remove it off from the HUSD system.”
Though this opens a new horizon for stablecoin proponents, only time will tell in Huobi’s new stablecoin HUSD can create a lasting impact.