Huobi’s new stablecoin HUSD has had an impressive first day of trading. Thanks to the seamless transition to a separate token, the change did not cause any interruption for traders, which ultimately led to a $30,000,000 trading volume on day one.
As a reminder, the term HUSD was already in use by the popular exchange, however it did not represent a separate token. Instead, it merely encapsulated other stablecoin holdings (such as TUSD, USDC and GUSD), simplifying the process of handling USD-backed tokens for users.
Starting today, HUSD has its own ERC-20 token, with Paxos Trust acting as the USD asset custodian. In an official announcement, Huobi claims that the HUSD token will be subject to monthly attestations.
The announcement stated that three trading pairs will be available on the Singapore-based exchange from the start – PAX/HUSD, TUSD/HUSD and USDC/HUSD.
However, USDT, BTC, ETH, XRP, EOS and HT can also be purchased with the new stablecoin. In fact the leader in volume is the BTC/HUSD trading pair.
In the meantime, Huobi Token saw a surge in price, in stark contrast to the majority of large cap coins which followed BTC’s drop. The spike is likely a signal that investors believe that HUSD could steal a significant portion of the market capitalisation of its competitors. Despite trading only on Huobi for the time being, trading volume on its first day as a separate token exceeded the combined volume of DAI on all exchanges that support the stablecoin.
The second day of trading will likely be just as successful as the first one, as trading HUSD for other USD-backed stablecoins will be subject to no fees. The promotion is already active and will remain so until August 22.
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