Huobi, the world’s third largest cryptocurrency exchange by trading volume, announced today that it would launch its own stablecoin called HUSD.
Stablecoins are cryptocurrencies pegged to a stable asset as gold or fiat currencies. The buzzword has been embroiled in controversies, particularly after the world’s dominant stablecoin USDT lost its dollar peg since October 15. Upon this, several top crypto exchanges began to (or plan to) list alternative stablecoins like PAX, TUSD, USDC and GUSD.
Earlier today, Huobi has announced to offer support for the four stablecoins – Paxos Standard (PAX)，True USD (TUSD)，USD Coin (USDC) and Gemini Dollars (GUSD). Hours later, the exchange announced to launch its own stablecoin HUSD, which could be switched into any of the four stablecoins if users need it. If its all-in-one program works, it will spare users the trouble to choose between multiple stablecoins and save costs when switching between them.
Users’ account will only show HUSD after they deposit any kind of stablecoins. When the amount of a particular stablecoin is not sufficient in users’ account balance, they may withdraw other stablecoins in which they have excess balances.
As the announcement reads, “when you deposit 1 PAX, your account will show 1 HUSD, and you can withdraw 1 PAX or 1 TUSD (not considering transaction fees on the blockchain).”
Currently, the HUSD solution supports four stablecoins: Paxos Standard (PAX), True USD (TUSD)，USD Coin (USDC) and Gemini Dollars (GUSD), and may introduce more stablecoins in the future. Transfer service of HUSD between Huobi OTC and Huobi Global will start at 10:00 AM, October 22 (GMT+8), and trading services of HUSD on Huobi OTC will start at 10:00, October 23 (GMT+8), according to its announcement.
Given that stablecoins are typically used as on-ramps for investors looking to purchase bitcoin or other cryptocurrencies. The move marks the crypto exchange’s ambition to attract more potential crypto investors by lowering the threshold and sparing troubles for users.
*Edited based on an article from 8btc.