Popular cryptocurrency exchange based in Singapore Huobi switches from using the current HUSD token in the existing stablecoin-based system to a new system that uses ERC-20 tokens instead. The latest initiative is made possible through a partnership the company has formed with two crypto startups, mainly Paxos Trust Company and Stable Universal Limited.
According to the press release released On July 17, Stable Universal is building new ERC-20 tokens pegged to the US dollar held in reserve by Paxos, a custodian regulated by the New York State Department of Financial Services (NYDFS).
The new HUSD tokens will first be listed on the Huobi Global Exchange and integrated into Huobi’s over-the-counter services. Switching from the existing HUSD system to the latest ERC-20 system will have a significant impact on crypto exchanges, wallets and platforms.
During this process, Stable Universal will allow users to purchase HUSD on a one-to-one basis for US dollars. Paxos will handle the Know Your Customer and anti-money laundering process for opening accounts with Stable Universal. In addition, Stable Universal will work with the third party to conduct smart contract audits and monitor transactions in the chain.
The need for the upcoming changes is based on various factors such as security, trustworthiness and salvation 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 is the best fiat ramp and will change the world. We’re excited that Huobi will list HUSD tokens, which will allow us to build liquidity quickly with its huge customer base. In combination with the excellent reputation of Paxos, we offer a product with the highest level of supervision and protection. “
When it comes to listing, the token will be available on Huobi Crypto Exchange as well as other platforms. To ensure the project’s USD reserve matched the HUSD offering, a leading US accounting firm was hired.
Richmond Teo, Paxos Paxos Asia Co-Founder and CEO said:
“We are proud to now offer Trust-as-a-Service to operate HUSD Token, a new stablecoin for Huobi Global. This is a new model that will allow other innovators to create safe, trustworthy and fully secured solutions that will support wider adoption of the crypto cash and asset market using our unique regulated status. ”
The Huobi Group has also partnered with Nervos, a multi-tier blockchain network, to unlock their public blockchain network based on the Decentralized Financial Services (DeFi). The proposed Huobi Financial Chain is aimed at corporations, financial institutions and the use of their own blockchain and asset tokenization.