Huobi is the third-largest crypto exchange in the world by daily trading volume, with around $ 416 million in day trading at press time. Crypto exchange Huobi announced the launching of its stablecoin solution known as HUSD, which will be compatible with several different currencies. Huobi unveiled its project in late 2018 to develop HUSD, a universal stablecoin that investors could use to convert and trade between select dollar-pegged digital currencies. A little more than a month after that announcement, Huobi informed the crypto community that HUSD is a reality. It will be congenial with Gemini Dollar, Paxos Standard, USDCoin, and TrueUSD, allowing its users to exchange it for any of them and anywhere where they are accepted. It offers the possibility to deposit any of the supported currencies such as HUSD, Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollars (GUSD). Users will have a balance in HUSD as a kind of aggregator and receive a 1: 1 HUSD compensation stored and redeemed for six pairs on Huobi Global. Users can also withdraw HUSD as any of the applicable stablecoins The HUSD represents a reduction in trading fees for traders who run different markets to manage their stablecoins. Rumors suggest that Binance could be developing a similar project, although nothing is confirmed.
A stablecoin without blockchain:
An interesting fact about HUSD is that it does not work on a specific Blockchain network, which means that it cannot be withdrawn or traded off the platform. This particularity makes it a kind of cryptocurrency that only operates within the exchange. HUSD presents certain similarities with the derivatives market, although the contents are linked to the cryptocurrency ecosystem and have a greater constitution. On the other hand, HUSD can also be exchanged for Tether (USDT) within the platform. However, it has not been incorporated into the dynamics in which the other stablecoins participate in Huobi.
HUSD is not Huobi USD:
While they are partners and have a lot of business been done between them, they are not the same. There are two different entities running these operations.