The Huobi Group, according to a recent press release, is partnering with a blockchain startup called Nervos from China to collaborate on the development of a new public blockchain for facilitating decentralized financial services.
The leading digital asset and financial service provider will work with the blockchain startup to ensure that companies can deploy their own blockchains, DeFi services and tokenized assets more easily, through the use of this public blockchain.
This blockchain is to be named the “Huobi Finance Chain” and will have all regulatory compliances in place to ensure a robust financial blockchain network.
Huobi is specifically planning to ensure that regulators can easily access the network and serve as validators to contribute to its running. The network will also include several tools to serve regulatory purposes, such as decentralized identifier (DID), Anti-Money Laundering (AML) and Know Your Customer (KYC).
Moreover, the developers are planning to ensure that the project can host lending and debit services, security token offerings (STOs) and stablecoins. They are also planning to include “other means of asset issuance”, payment services, and decentralized exchanges (DEXs) as a part of the network.
The project is supposed to be made open source in the third quarter of 2019, and the testnet launch of the Huobi Finance Chain is due to happen in the first quarter of 2020. The mainnet launch, on the other hand, has been planned for the second quarter of 2020.
This is an interesting move by Huobi, especially in light of the persistent concerns surrounding regulation of decentralized systems in the world of finance. This network will enable the implementation of a compliant approach for companies working in finance sector.