Huobi Revamps its Stablecoin System with New ERC-20 Token

The Huobi crypto exchange is replacing its stablecoin solution with a new HUSD ERC-20 token in partnership with crypto startup Stable Universal Limited and Paxos Trust Company, the companies announced in a press release.

According to the press release, the new ERC-20 HUSD Token, which was developed by Stable Universal, will be pegged to the U.S. dollar and held in reserve by the custodian Paxos, which is regulated by the N.Y. State Department of Financial Services. Frank Zhang, the CEO of Stable Universal, said in the press release:

“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.”

According to an official blog post by Huobi, the new stablecoin will be listed on the exchange on July 22, and will become the “first regulated stablecoin fully listed and integrated with Huobi Global – and an alternative to Tether”. The token will become available on other exchanges and wallets on a later date, and according to the company statement, a “top U.S. auditing firm” will be conducting monthly checks to make sure that the USD reserves match the supply of HUSD.

Once launched, the token will be available for purchase on a 1:1 basis on a forthcoming website from Stable Universal, stcoins.com. Paxos will be the one managing the KYC and AML procedures for account openings, while Stable Universal will work with third parties to conduct on-chain transaction monitoring and smart contract audits. Richmond Teo, Paxos Co-Founder and CEO of Paxos Asia, said in the announcement:

“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.”