Cryptocurrency exchange Huobi has partnered with two firms, Stable Universal Limited, a U.S.-based crypto startup venture and Paxos trust to launch a United States dollar-backed stablecoin token HUSD.
To ensure full backing of every HUSD Token and regulatory oversight, the dollars backing HUSD Token will be held in reserve by Paxos Trust Company, a fiduciary and qualified custodian regulated by the New York State Department of Financial Services (NYDFS).
Livio Weng, CEO of Huobi Global, commented,
“Providing better options to our users has always been one of our biggest priorities at Huobi. We are proud to partner with Paxos and Stable Universal on this pioneering project and look forward to bringing the new HUSD Token to more than ten million users. It is truly exciting to see the HUSD project grow from a stablecoin solution to a stablecoin in its own right.”
HUSD Token will first be listed by Huobi Global, while in the coming days, Huobi will transition from its current HUSD system (a solution that allows multiple stablecoin denominations to trade as one) to the new HUSD Token issued by Stable Universal. HUSD Token, designed as an ERC-20 token, will also be available to be listed on other exchanges, wallets and cryptocurrency platforms.
Frank Zhang, CEO of Stable Universal, said,
“In today’s cryptocurrency markets, traders always need access to a safe, trustworthy stablecoin that is fully redeemable and limits risk exposure. HUSD Token is reliable and designed to be efficient and simple – we believe it’s the best fiat on-ramp and will be a game-changer in the space. We’re excited that Huobi will list HUSD Token, allowing us to build liquidity quickly with their massive customer base. Combined with the sterling reputation of Paxos, we are offering a product with the highest level of oversight and protection.”
In addition to trading HUSD Token on Huobi Global, users can also get HUSD Token 1:1 for USD through Stable Universal by opening an account on www.stcoins.com.
Paxos will manage all “Know Your Customer” and anti-money laundering compliance reviews for these account openings, in addition to holding the USD deposits in reserve.
On a monthly basis, a top U.S. auditing firm will perform an attestation to ensure USD reserves match the supply of HUSD Token. Stable Universal will work with third parties for smart contract audit and on-chain transaction monitoring.
Richmond Teo, Paxos Co-Founder and CEO of Paxos Asia, commented,
“Paxos maintains a unique position in the crypto-asset space because of our regulatory stack and deep commitment to protecting customer assets. Trust underpins all aspects of our own products, and we are proud to now offer trust-as-a-service to power HUSD, a new stablecoin for use on Huobi Global. This is a new model that allows other innovators to create safe, trusted and fully-backed solutions that support wider crypto-market adoption for cash and assets using our unique regulated status. This is just the beginning of what Paxos can offer as we build the future of digital assets.”
What do we know about HUSD
According to the press statement released to the media Huobi’s HUSD would be different than most of the current stablecoin projects.
The statement claims that to ensure full backing of every HUSD token and regulatory oversight, every dollar backing HUSD Token will be held in reserve by the Paxos Trust Company, a fiduciary and qualified custodian under the New York State Department of Financial Services (NYDFS).
This means that HUSD Token carries a high level of industry-leading compliance currently available for a stablecoin. The statement furthers that full integration into Huobi Global, one of the largest and most liquid cryptocurrency exchanges in the world.
Whereas, the partnering trio is also A simple, fast, and straightforward fiat onramp and offramp via a soon-to-launch service by Stable Universal, where HUSD Token can be purchased and redeemed. The service will be located at stcoins.com. HUSD Token will also be integrated into Huobi OTC.