Huobi’s HUSD Stablecoin to Undergo Reconstruction with the Help of Stable Universal Ltd.
Huobi’s current HUSD stablecoin is set to be replaced by a new ERC-20 token reports Coin Desk. The token ticker will remain the same and Stable Universal Limited will be given the responsibility to actually create it.
As per the press release referenced by Coin Desk, the stablecoin will maintain a 1 to 1 value against the USD.
The need for said changes is allegedly founded on factors such as safety, trustworthiness and redemption revealed the CEO of Stable Universal Limited, Frank Zhang. Furthermore, it was shared that,
“The HUSD Token is reliable and designed to be efficient and simple – we believe it’s the best fiat on-ramp and will be a game-changer in the space.”
In terms of its listing, the token will be housed on both the Huobi crypto exchange as well as other platforms. To ensure that the project’s USD reserve matches the HUSD supply, a “top US auditing firm” has supposedly been hired. Other third-parties will also play a major role in this endeavor, as their tasks entail the overall auditing and monitoring of the smart contracts and on-chain transactions respectively.
The CEO of Huobi Global, Livio Weng has since expressed a similar sentiment to that of Zhang, in which the former shared that he is hopeful that their priority of offering “better options to the cryptocurrency community” will be met.
When it comes to the reserve in which HUSD will be held, it has been reported that Paxos Trust Company was chosen, one that has since been regulated by the New York State Department of Financial Services (NYDFS).
Said partnership is not of surprise given the common aims between both parties, i.e. safety, trust – both of which are approached through innovative solutions.