Huobi, the Singapore-based cryptocurrency exchange, has just launched a solution that enables users to switch between different types of fiat-pegged cryptocurrencies, or stablecoins, in event of market fluctuations.
Announcing the solution, called HUSD, at a press conference on Friday, the firm said Paxos’ PAX, TrustToken’s TUSD, Circle’s USDC and the Gemini exchange’s GUSD tokens are being supported initially.
Previously, users that deposited, say, GUSD, were limited to taking out GUSD or converting it to a non-pegged cryptocurrency such as bitcoin. Using HUSD, though, they can deposit one of the four stablecoins and withdraw a different stablecoin of their own choice.
Huobi’s chief operating officer, Robin Zhu, further explained that HUSD is not itself a stablecoin or protocol, but rather, a medium that facilitates exchange between the different stablecoins.