Huobi cryptocurrency exchange will transition its HUSD token from its current stablecoin system to an ERC-20 token through a partnership with crypto startups Stable Universal Limited and Paxos Trust Company.
Per a press release published on July 17, Stable Universal will develop a new ERC-20 HUSD Token, which will be pegged to the United States dollar and held in reserve by the New York State Department of Financial Services-regulated custodian Paxos. Huobi will be the first platform to list HUSD Token.
In the coming days, Huobi will change over from its current HUSD system to the new ERC-20 token, which will subsequently be available on other cryptocurrency exchanges, wallets and platforms.
Throughout the process, Stable Universal will let users purchase HUSD on a one-for-one basis for U.S. dollars, while Paxos will manage the Know Your Customer and Anti-Money Laundering procedures for account openings on Stable Universal. Additionally, Stable Universal will work with third parties to conduct smart contract audits and on-chain transaction monitoring.
Richmond Teo, Paxos co-founder and CEO of Paxos Asia, said that “we are proud to now offer trust-as-a-service to power HUSD Token, a new stablecoin for Huobi Global. This is a new model that allows other innovators to create safe, trusted and fully-backed solutions that support wider crypto-market adoption for cash and assets using our unique regulated status.”
In late June, Huobi announced that it will be moving aggressively to the Turkish market over the next 12 months, since the country has a “very important and promising prospective market.”
Earlier this month, major crypto exchange Binance announced that it is switching from Omni-based addresses to ERC-20-based addresses in customer wallets for the stablecoin Tether (USDT). The announcement noted that Ethereum’s ERC-20 based addresses will be the standard from now on, and exchange users will not be able to withdraw Omni-based USDT.