Huobi Trust becomes custodian for stablecoin HUSD as battle heats up

Karthik Subramanian

Huobi Trust, a Nevada-based retail trust company, has announced that it has been appointed as the full custodian for the stablecoin HUSD which is pegged and backed by USD.

Huobi Trust has been licensed by the Nevada Department of Business and Industry’s Financial Institutions Division and it will become the custodian for HUSD as of July 2021. This means that the trust would be expected to have in its custody, a USD equivalent of HUSD at a ratio of 1:1 and it is believed that the presence of an official and regulated custodian would help to build trust in HUSD.

“Huobi Trust is excited to be entering this partnership with HUSD in our joint efforts to promote innovative, financial solutions through the power of blockchain technology. Our companies are aligned on the importance of compliance, and the safety and security of customers’ assets are at the forefront of everything we do, which makes this partnership a natural fit,” Said Rebecca Hirst, Chief Trust Operations Officer of Huobi Trust Company, “The HUSD Token has seen tremendous growth over the past few years and we look forward to building together on this success.”

Huobi Trust and HUSD partnership continue the building of an ecosystem around HUSD which is being projected as a stablecoin of choice in the future. It recently surpassed $1 billion in transactions and would be looking to take on established stablecoins like USDT, USDC, and others soon. With the prices of bitcoin continuing to highly volatile, it has led to the shunning of bitcoin as a payment mechanism and so the digital payments industry is looking towards stablecoins to fill that gap as the stablecoins are pegged to the USD and as long as they are backed and audited by reliable entities, they are likely to serve as a digital alternative to USD.

There has been a surge of interest in the crypto market over the last couple of years and this has led to an increased demand for stablecoins. But with many central banks also looking to come up with their own version of digital currencies, it remains to be seen how the stablecoins would react to such a development and what kind of a regulation that the central banks would bring in for these stablecoins. Some critics claim that the most used stablecoin, USDT, is not fully backed and if this turns out to be true and push comes to shove, things could turn for the worse.

Read this next

Digital Assets

Zumo launches B2B ‘Crypto-as-a-Service’ solution for brokers

The new product, Zumo Enterprise, also features an embedded ESG and net zero strategy.

Technology

Top Tools to Add to Your Trading Platform to Delight and Retain Traders

The online trading boom that started during the pandemic-led lockdowns is abating. This is in part due to sustained market volatility which seems to be discouraging new investors. For example, day trading volumes in the US for retail investors declined in the last 2 quarters of 2021.  

Technology

Embedded finance platform Alviere taps Marqeta for branded card issuance in Europe and UK

Alviere has recently raised $70 million to fuel the ongoing expansion across the European region and the United Kingdom.

Retail FX

Overcharts partners with dxFeed for CME Group Market Depth

“More and more traders are using Market Depth while conducting volume analysis. Its primary function is to help traders identify potential support and resistance levels.”

Digital Assets

CoinGecko expands collaboration with CER.live security rating

CoinGecko, one of the earliest crypto data aggregators, has integrated the security score data from the CER.live rating. The trust assessments given to crypto projects will be integrated into their pages on CoinGecko website to draw users’ attention to the importance of security.

Metaverse Gaming NFT

Klaytn taps Parity Technologies to build infrastructure for Klaytn-Substrate

Klaytn has initiated a collaboration with blockchain infrastructure company Parity Technologies to strengthen its tech stack and meet the demands of enterprises looking to harness the crypto technology.

Retail FX

US Retail FX brokers suffer steep fall in client deposits, Trading.com racked up $46K

Retail FX deposits at US brokerages, which have been struggling to eke out a profit in a strict regulatory environment, dropped in March 2022 by $35 million, CFTC data showed.

Retail FX

eToro supports Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI)

Israeli social trading network eToro has added support for trading three new tokens. Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI) are the next coins to join eToro’s list of featured digital assets.

Executive Moves

LiquidityBook hires Fintech veteran Jonathan Cross to lead EMEA business

LiquidityBook, a provider of FIX and OMS trading solutions for both the buy and sell-side, has added Jonathan Cross to its business team for the EMEA region.

<