Huobi’s Stablecoin Sees a Successful Launch and 30 Million USD in Trading Volume
- Starting today, HUSD is a separate token, rather than a virtual encapsulation of stablecoins on Huobi.
- The trading volume of the token is already impressive, and likely to grow as Huobi has introduced 0-fee trading for it.
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.
- PayPal USD (PYUSD) will be issued by Paxos and the Ethereum blockchain, and is backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents.
- The company said the stablecoin can be redeemed for U.S. dollars at all times, and exchanged for any other crypto supported by the platform, including BTC, ETH, BCH, and LTC.
PayPal logo and sign in front of PayPal Holdings headquarters building in North San Jose Innovation District in Silicon Valley, San Jose, California, USA, 17 March, 2019. Michael Vi/Shutterstock
- The Securities Commission Malaysia ordered Huobi Global to stop all of its activities in the country as it was not registered with the regulator, and was operating illegally.
- The exchange was also directed to disable its website and mobile applications, as well as cease all advertising of its products and services in the country.
- Canadian customers who have no funds in their Paxos accounts will have their accounts automatically closed on 9 May, while the rest will be disabled on 2 June.
- Paxos is not the only company to be leaving Canada, with cryptocurrency exchanges dYdX and OKX saying they will wind down their businesses in the country due to “new regulations”.