Huobi’s HBUS to Launch Lending, OTC Trading, and Stablecoin for Institutional Crypto Investors
Huobi Global is known as a crypto behemoth and it looks like the U. S. branch of the company is just about to expand. The U. S.-based version of the company has recently announced the start of a new team, which will develop solutions for institutional investors in the country which are ready to jump into the crypto world.
The new group was announced today and its new head will be Katelyn Mew. Mew’s experience comes from several prominent companies like BlackRock. Other important names include Charles Schwab, as well as Oren Blonstein from Tora Trading Services.
According to Blonstein, the main tasks of the group are to set up new service groups for the institutional investors and to focus their time and resources into expanding this market segment for them. He affirmed that the company has a real institutional offering now and that services like over the counter (OTC) desks and token lending will be included.
Frank Fu, the CEO of Huobi US (HBUS), has affirmed that the crypto crash from last year actually benefited the market since only the strongest projects will be able to survive in 2019 and companies like JPMorgan and IBM are starting to enter the market now.
A Possible Stablecoin
An interesting prospect raised by the press release was the creation of a Huobi stablecoin. The official report does not affirm that this will, indeed, happen, but it opens the door for speculation.
Mew affirms on the document that the company is ready to offer a sophisticated trading system and investors need trusted companies in order to protect their assets. As a part of this, the company will be giving a chance to the idea of the stablecoin.
However, it seemed that if the tests (or market research) show that the stablecoin is not the best idea, it will not happen, so don’t take this as an official announcement.
Blonstein, which will be the vice president of technology in Huobi US, has affirmed that the main advantage of the platform is that people will be connected to traders outside of the U. S. as Huobi has the fourth largest trading volume in the world and it is based in Singapore. The company is global and can expose investors to a global market.
To ensure no trouble for the investors, he also affirmed that the company has all the needed licenses and that the institutional investors will be protected in all cases. What they will have is liquidity outside of the country but via a U. S. platform that is fully compliant with the local laws.
At the moment, Huobi US has money transmission licenses in most of the states of the country and the company intends to get the licenses where it is lacking at the moment, especially the valuable New York license. The company is based in San Francisco and registered with the federal government and the U. S. Treasury.
Institutions Are Getting Into Crypto Trading
Huobi is just one of the latest companies who is focusing their efforts on giving space for institutional investors. Big companies like Fidelity Investments are entering the game as well this year, together with some other crypto-native companies like Coinbase, which has already been dipping its toes with institutional investors since last year.