Stable Universal in a press release stated that it will help create a new ERC-20 HUSD token. The token will be backed by the U.S. dollar and kept in reserve by Paxos (a NYDFS accredited custodian).
Huobi Global will be the first platform to list the HUSD token, the token will then be incorporated into Huobi’s over-the-counter (OTC) services. After the listings, Huobi will change from its current HUSD tokens to the new ERC-20 tokens.
Stable Universal and Paxos Trust
Crypto startup Stable Universal will make it possible for users to purchase HUSD token on a one-to-one basis with the U.S. dollars. It will also assist third parties to conduct smart contract audits and monitor on-chain transactions. The press release also stated that a “top U.S. auditing firm” will carry out a monthly assessment to ensure the USD reserves match the HUSD supply. CEO of Stable Universal Limited, Frank Zhang, said:
“We’re excited that Huobi will list HUSD Token, allowing us to build liquidity quickly with massive customer base. Combined with the sterling reputation of Paxos, we are offering a product with the highest level of oversight and protection.”
Paxos Trust will be in charge of ensuring strict compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) policies during account opening procedures on Stable Universal. Richmond Teo, Co-founder of Paxo and CEO of Paxos Asia said:
“This is a new model that allows other innovators to create safe, trusted and fully-backed solutions that support wider crypto-market adoption for cash and assets using our unique regulated status.”
This announcement comes after Huobi reduced its token supply by burning 14 million out of its 310 million Huobi Token (HT) in circulation. Huobi Group also disclosed a partnership with blockchain network Nervos to create decentralized financial (DeFi) services. The proposed decentralized Financial Chain will help businesses, financial institutions, and exchanges to create and design their own blockchain and tokenize assets.