Huobi Upgrades HUSD to USD-pegged HUSD Token
Huobi is going to move from using its HUSD token in the existing stablecoin-based system to a system that will see it using ERC-20 tokens instead. 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). This means that HUSD Token carries a high level of industry-leading compliance currently available for a stablecoin.
After being upgraded, HUSD will no longer be used as a stable coin solution, but become a real stablecoin. Users can convert the existing HUSD into PAX, TUSD and USDC at 1:1 exchange rate from 22:00 on July 17 to 18:00 on July 17, otherwise HUSD in the account will be automatically upgraded to HUSD Token at 1:1 exchange rate.
As the process moves along, Stable Universal will allow users to buy HUSD on a one-for-one basis against US dollars. 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.”
At the time, Paxos will take care of the KYC (Know your Customer) and AML (Anti Money Laundering) procedures for the operation. Stable Universal will also work alongside third party organizations to carry out blockchain smart contract-based audits. 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 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. This is just the beginning of what Paxos can offer as we build the future of digital assets.”
In October last year, HUSD was launched by Huobi as a solution for stablecoin, which supports PAX, TUSD, USDC and GUSD. In Huobi Global Station, it will be reflected as HUSD in the account when the user charges one kind of the stablecoin,.And the user can choose any kind of stable coin in withdrawal. When the stock of any kind of stablecoin is insufficient, other stablecoin can also be chosen.
After Huobi Revamps HUSD Stablecoin, users can exchange stable coin with US dollars at www.stcoins.com after July 22, thus enhancing the efficiency, convenience and liquidity of transaction.