Boots landed, Huobi launched the stable currency HUSD Token
Author | Qin Xiaofeng
Editor | Lu Xiaoming
Produced | Odaily
(Image via Cointelegraph)
according toAuthor | Qin XiaofengEditor | Lu Xiaoming
Produced | Odaily
image description
(Image via Cointelegraph)
Huobi official website
Announcement, Huobi will upgrade the previous stablecoin solution HUSD for the third time in the near future, and launch the stablecoin HUSD Token anchored to the US dollar.
In January of this year, Huobi Chief Financial Officer Chris Lee revealed that Huobi would launch its own stablecoin. After half a year, the boots finally landed.
It is worth noting that one of the partners of HUSD Token is Paxos Trust, which will be responsible for the custody of the anchored USD assets.
Paxos Trust is a New York State chartered trust company regulated by the New York State Department of Financial Services (NYDFS). In September 2018, the company launched Paxos Standard (PAX), a regulated stablecoin.
It is mentioned in the announcement that HUSD Token will be audited on a monthly basis, and the audit certification work will be carried out by a top American audit company, but the name of the company is not mentioned; in addition, regarding the number of stablecoins issued and whether the assets behind the stablecoins are US dollar deposits It is still a package of assets, which was not mentioned in the announcement.
secondary title
After Huobi launched the stablecoin, many people who eat melons may have doubts. Hasn’t Huobi launched its own stablecoin —— HUSD, why should it launch a new stablecoin again?
In fact, HUSD is not a stable currency in the true sense, it is just a stable currency solution launched by Huobi.
In the second half of 2018, the competition in the stablecoin market was fierce, and a variety of stablecoins appeared on the market, including Paxos Standard (PAX), USD Coin (USDC), True USD (TUSD) and Gemini Dollar (GUSD).
It is difficult to conduct direct transactions between different stablecoins, which affects transaction efficiency. In this context, Huobi launched the stablecoin solution HUSD, and stipulated that it can be exchanged 1:1 with PAX, USDC, TUSD and GUSD, that is, HUSD is the stablecoin of the stablecoin.
However, HUSD has been controversial since its launch. The core point is that it has not anchored assets, and its quantity is completely controlled by the centralization, which is unknown to the outside world. In addition, Odaily found that HUSD on Huobi Trading pairs have never opened trading pairs between HUSD and other stablecoins (except USDT); and since November last year, HUSD has stopped depositing and withdrawing, but it can still be purchased on OTC, that is, it has become a "stand-alone game". A far cry from an open market for stablecoins.
According to the latest announcement, users who hold HUSD can choose to exchange their HUSD into any one of PAX, TUSD, and USDC at a ratio of 1:1; if the user chooses to keep HUSD, it will be automatically upgraded to HUSD Token.
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Exchanges Enter the Stablecoin Market
Since the beginning of this year, the three major exchanges have successively entered the stablecoin market.
Why do new stablecoins still choose the US dollar as the anchor?
