Singapore-based popular cryptocurrency exchange Huobi is shifting from using the current HUSD token in the existing stablecoin-based system to a new system where it will be using ERC-20 tokens instead. The latest initiative will be facilitated via a partnership that the firm has made with two crypto startups mainly Paxos Trust Company and Stable Universal Limited.
According to the press release published on July 17, Stable Universal build new ERC-20 tokens which will be linked to the United States dollar held in reserve by Paxos, a New York State Department of Financial Services (NYDFS)-regulated custodian.
The new HUSD tokens will be first listed on the Huobi Global Exchange and incorporated in the Huobi’s over-the-counter services. The shifting from the existing HUSD system to the latest ERC-20 system will have a significant impact on the crypto exchanges, wallets, and platforms.
During this process, Stable Universal will enable users to buy HUSD on a one-on-one basis against US dollars. Paxos will handle Know Your Customer and Anti-Money Laundering process for opening accounts at the Stable Universal. Apart from this, Stable Universal will work with the third parties to carry out smart-contract audits and on-chain transaction monitoring.
The need for the upcoming changes arrives based on various factors such as safety, trustworthiness, and redemption stated by Frank Zhang, CEO of Stable Universal. He further said,
“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.”
When it comes to listing, the token will be available on both Huobi Crypto Exchange and other platforms. To make sure that the project’s USD reserve matches the HUSD supply, a leading US auditing firm has been hired.
Richmond Teo, Paxos Co-Founder and CEO of Paxos Asia said,
“We are proud to now offer trust-as-a-service to power HUSD Token, a new stablecoin for 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.”
Huobi Group has also teamed up with Nervos, a layered blockchain network to release its public blockchain network based on the decentralized financial (DeFi) services. The suggested Huobi Financial Chain is aimed for businesses, financial institutions, and to deploy their own blockchain and tokenize assets.