Huobi introduces Tether’s stablecoins pegged to euro, gold
Huobi, the world’s sixth-largest crypto exchange by trading volume, is set to introduce for its clients two stablecoins representing ownership of physical gold and Euro-pegged tokens.
Backed by Tether, the issuer of the world’s largest dollar-pegged stablecoin, Tether Gold (XAUT) and Euro Tether (EURT) will go live on Huobi’s platform on December 8.
Created to satisfy euro-biased crypto enthusiasts, EURT can provide protection during periods of extreme volatility in the market while improving the risk and return metrics of crypto-investment portfolios.
Meanwhile, XAUT is Tether’s token pegged to the price of gold that provides an accessible way to invest in the bullion. Every one Tether Gold is equal to a troy fine ounce of gold, which are backed using physical London Good Delivery (LGD) standard bars.
The new additions come shortly after Huobi was acquired by About Capital, a Hong Kong-based fund management firm started by Ted Chen, who founded China’s hedge fund giant Greenwoods Asset Management. Earlier this year, Bloomberg reported that the founder Leon Li was looking to sell his majority stake for over $1 billion, valuing the exchange at $3 billion.
“We are thrilled to be launching XAU₮ and EUR₮ on one of the oldest and leading exchanges in the world. By gaining access to the stablecoin that represents ownership of physical gold and the Euro-pegged stablecoin that’s backed by the same company behind the first, most stable and trusted stablecoin, we believe the Huobi Community will be poised to thrive and continue to grow,” said Paolo Ardoino, CTO at Tether.
Tether has also introduced the “GBP₮” token, which is fully backed by Sterling-denominated reserves held in the custody of financial institutions that fall within the regulatory perimeter. GBP₮ joined other fiat-currency pegged tokens Tether has in the market: the U.S. dollar-pegged USD₮, the Euro-pegged EUR₮, the offshore Chinese Yuan-pegged CNH₮, as well as the recently launched MXN₮, the Mexican Peso-pegged stablecoin.
The world’s largest stablecoin issuer has distanced itself from of the liquidity crisis that engulfed the crypto exchange FTX and its trading arm Alameda Research, saying they have no exposure to Samuel Bankman-Fried’s crypto empire.
Tether seeks to reassure investors that its cryptocurrency is backed by U.S. dollars after the major stablecoin has been dogged by speculation that it holds insufficient capital to support its market cap of USDT.
