BTC Wires

Huobi Collaborates With Nervos To Launch New Blockchain Platform

Cryptocurrency exchange operator Huobi Global has recently announced a new blockchain platform in association with Nervos. Provisionally dubbed Huobi Finance Chain, the platform has been designed to ensure enterprise clients to create blockchain assets, decentralised finance products as well as their own blockchains. More specifically, Huobi lists “lending services, debit services, stablecoins, security token offerings (STOs)” as some of the possible applications.

Nervos, which will provide the technological basis for Huobi Finance Chain, is building a layered blockchain network with a public proof-of-work blockchain called Common Knowledge Base serving as its base layer.

Huobi Group CEO Leon Li commented:

“This project is not only in line with Huobi’s overall strategy, but it also fulfils our core mission. From a strategic point of view, decentralized financial services are still in an early stage of development. The market demand is clear, however, and we believe this is a very definite business opportunity.”

Earlier this year, Binance, which is one of Huobi’s main competitors, has also launched their own blockchain platform earlier this year. However, Binance Chain is currently tailored explicitly towards the creation and trading of blockchain-based assets.

But it is peculiar that Huobi says it is targeting the decentralised finance (DeFi) market while maintaining that the platform will be in compliance with KYC and AML regulations and allow regulators to join the network as validators. Though it is certainly possible that the most popular DeFi services that exist on the market, right now, will eventually be pressured into adhering to KYC/AML regulations, requiring personal information in order to use facilities is most likely not a strong selling point for the DeFi crowd.

On the other hand, we will have to wait until we have more details about Huobi’s Finance Chain before we can estimate the platform’s sufficient level of decentralisation. It is expected that the mainnet will be launched in Q2 2020, while a testnet is planned for Q1 2020.