Huobi is replacing its current stablecoin solution with a new ERC-20 token.
Also called HUSD, Stable Universal Limited created the new token, which “will be regulated and audited to be 1:1 to the actual value of U.S. dollar,” according to a press release.
“In today’s cryptocurrency markets, traders always need access to a safe, trustworthy stablecoin that is fully redeemable and limits risk exposure,” Frank Zhang, CEO of Stable Universal, said in a statement. “The 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.”
The token will be listed on the Huobi exchange but will also be available on other exchanges and wallets. According to a company statement, “a top U.S. auditing firm” will perform monthly attestations to make sure the project’s USD reserves match the supply of HUSD.
“Stable Universal will work with third parties for smart contract audit and on-chain transaction monitoring,” the company added.
The new stablecoin can be bought and redeemed at a forthcoming website from Stable Universal, stcoins.com, Huobi said in a press release. HUSD will be integrated into the Huobi Global exchange as well as Huobi’s OTC service. Stable Universal is backed by Huobi Capital.
“Providing better options to the cryptocurrency community has always been one of our biggest priorities here at Huobi,” said Huobi Global CEO Livio Weng.
Notably, the dollars backing HUSD will be held in reserve by Paxos Trust Company, which is a qualified custodian regulated by the New York State Department of Financial Services (NYDFS).
“Paxos maintains a unique position in the crypto-asset space because of our regulatory stack and deep commitment to protecting customer assets,” Paxos co-founder Richmond Teo said in a statement. “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.”
The Huobi Group is a $1 trillion exchange and owns part of Stable Universal. Paxos is a New York-based startup that aims to digitize all assets, “from money to commodities to securities,” the company wrote. Paxos also issues its own dollar-backed stablecoin, PAX.
Huobi booth image via CoinDesk archives