As per latest reports, top cryptocurrency exchange 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. This transition will be facilitated through a collaboration that the exchange has struck up with two crypto startups, namely, Paxos Trust Company, and Stable Universal Limited.
According to a press release published recently, Stable Universal is working on the development of a whole new ERC-20 HUSD token. This new token will apparently be pegged to the US dollar, that will be held by Paxos, a custodian service regulated by the New York State Department of Financial Services. The new HUSD tokens will first be listed on the Huobi exchange itself.
In the near future, Huobi will make the move from its existing stablecoin-based HUSD system, to its new ERC 20 tokens. Soon, the new tokens will be made available on other crypto exchanges, platforms and wallets.
As the process moves along, Stable Universal will allow users to buy HUSD on a one-for-one basis against US dollars. 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.
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.”
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.”