One stablecoin to rule them all – crypto exchange Huobi launches HUSD as an in-house solution to diversify risks

Oct 19, 2018

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Not long ago we showcased the recent rush of USD pegged stablecoins and how exchanges like Huobi are rushing to add them to offer a solution to the recent Tether (USDT) drama. As most of the current alternatives are pretty fresh on the market, its not without risk to accept them. Mainly there are various liquidity and instability problems that could potentially surface in some scenarios. Now it seems like the current third largest exchange Huobi just came out with a pretty neat solution to tackle these.

The exchange announced via a that they are launching an in-house stablecoin labeled HUSD or Huobi USD. HUSD will act like a firewall that protects users against the before mentioned problems, every incoming transaction towards the exchange that comes in one of the 4 stablecoins will be automatically converted to a HUSD balance. HUSD doesn’t come with its own blockchain though, so users will gain the ability to decide which stablecoin they want to withdraw.

(Image taken form Huobi’s blog)

Currently the 4 supported USD pegged tokens are the following: PAX, TUSD, USDC, GUSD.

According to future risk assessment any of the 4 could be striped from the system, while new ones can be added as there is demand for it. Conversion fees come with no costs on the exchange.

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