Cryptocurrency exchange Huobi in collaboration with U.S-based cryptocurrency startup Stable Universal and stablecoin issuer and custodian Paxos will be launching its own dollar-pegged stablecoin. Paxos shared the news about the development in a press release dated July 17.
According to the press release, Stable Universal will be developing a dollar-pegged ERC-20 HUSD token and will be held in reserve by Paxos, a custodian regulated by the New York State Department of Financial Services (NYDFS). The release added, the stablecoin will be initially listed on digital asset trading platform, Huobi Capital.
The release asserts that – “In the coming days, Huobi will transition from its current HUSD system to the new HUSD Token issued by Stable Universal.” Furthermore, the ERC-20 Huobi token will be listed on other cryptocurrency exchanges, wallets, and platforms.
Commenting on how the partnership could benefit the crypto community, Huobi CEO Livio Weng said in Huobi’s release statement –
“We are proud to partner with Paxos and Stable Universal on this pioneering project and look forward to bringing the new HUSD Token to over ten million users across Asia and the world. It is truly exciting to see the HUSD project grow from a stablecoin solution to a stablecoin in its own right.”
Stable Universal will enable users to purchase HUSD token at 1:1 ratio for US Dollars, while Paxos will be overseeing Know Your Customer and Anti-Money Laundering compliance parameters for account openings at Stable Universal’s official website. The HUSD token will be integrated into the Huobi Global exchange and also into the platform’s OTC services, the company added.
As per the release statement, Stable Universal will be working alongside third parties to carry out smart contract audits and on-chain transaction monitoring.
Earlier this month, Binance announced its transition from OMNI-based addresses to ERC-20-based addresses for the stablecoin Tether (USDT). The announcement highlighted that post the update, exchange users will no longer be able to withdraw OMNI-based USDT.