Crypto exchange operator Huobi Group has partnered with crypto startup Stable Universal Limited and crypto custodian Paxos Trust Company to launch a new US dollar-backed stablecoin.
The stablecoin, called HUSD Token, is designed as an ERC-20 token and will be issued by Stable Universal Limited. The dollars backing HUSD Token will be held in reserve by Paxos, a New York State Department of Financial Services (NYDFS)-regulated custodian, to ensure full backing of every token and regulatory oversight. On a monthly basis, an unnamed US-based auditing firm will perform an attestation to ensure USD reserves match the supply of HUSD Token.
The stablecoin will initially be listed by digital asset trading platform Huobi Global, with plans to list the token on other exchanges, wallets and cryptocurrency platforms in the future. Users will also be able get HUSD Token 1:1 for USD through Stable Universal by opening an account on www.stcoins.com.
“In today’s cryptocurrency markets, traders always need access to a safe, trustworthy stablecoin that is fully redeemable and limits risk exposure,” said Frank Zhang, CEO of Stable Universal. “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. We’re excited that Huobi will list HUSD Token, allowing us to build liquidity quickly with their massive customer base. Combined with the sterling reputation of Paxos, we are offering a product with the highest level of oversight and protection.”
Huobi said that the launch will allow them to transition from its current HUSD system, a solution that allows multiple stablecoin denominations to trade as one, to the new HUSD Token.
“Providing better options to our users has always been one of our biggest priorities at Huobi,” said Livio Weng, CEO of Huobi Global. “We are proud to partner with Paxos and Stable Universal on this pioneering project and look forward to bringing the new HUSD Token to more than ten million users. It is truly exciting to see the HUSD project grow from a stablecoin solution to a stablecoin in its own right.”
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