Huobi Becomes The Next Top Exchange To Add Stablecoins
In the wake of notable volatility in the world’s foremost stablecoin, Tether (USDT), top cryptocurrency exchanges are pushing to list more secure and transparent alternatives. On Monday, Malta-based crypto exchange OKEx announced that it would be listing TrueUSD (TUSD), Circle’s USDCoin (USDC), Gemini Dollar (GUSD) and Paxos Standard Token (PAX).
Now, Huobi has announced it will list four U.S. dollar-pegged cryptocurrencies. The Singapore-based exchange – currently, the fourth-largest by trading volume – said it will open deposits and withdrawals for TrustToken’s TUSD, Circle’s USDC, and two regulator-approved stablecoins: the Gemini exchange’s GUSD and Paxos’ PAX, on Oct. 19.
Livio Weng, VP of Huobi Group, said:
“Tether is one of the biggest stablecoins in the market, and realistically it will take some time before other stablecoins can catch up. We currently have no plans to restrict trading, deposits, or withdrawals in regards to Tether. However, in the interest of providing users with more choice, we are also in the process of listing several new stable coins.”
Let us take a closer look at the stablecoins listed by Huobi:
- Paxos Standard Token (PAX): Issued by Paxos Trust Company and regulated by the New York State Department of Financial Services, Paxos Standard Token is a brand new digital asset which is fully collateralized by and redeemable one-to-one with USD. Paxos Standard will allow the participants who leverages advantages of the blockchain technology to trade with USD-endorsed and USD-denominated assets under the supervision of financial regulators.
- TrueUSD (TUSD): TrueUSD is a stablecoin backed by USD. Collateralized by USD, it can be exchanged with and trusted by multiple banking partners in legally protected escrow accounts.
- USDCoin (USDC): USDC is a U.S. dollar-backed stablecoin issued by Circle and powered by CENTRE’s open-source framework. USDC offers solutions with detailed financial and operational transparency and resolves the problems that exist in the current crypto market. It is operated within the regulated framework of U.S. money transmission laws with established banking partners and auditors. On the basis of open membership, any eligible financial institutions can join USDC.
- Gemini Dollar (GUSD): Issued by a U.S. digital asset exchange Gemini, the Gemini Dollar is the world’s first regulated stablecoin approved by U.S. regulators. 1 GUSD = $1. The Gemini Dollar combines the creditworthiness and price stability of the U.S. Dollar with cryptocurrency technology and the oversight of U.S. regulators. As an ERC-20 token, the Gemini Dollar can be transferred on Ethereum network. Gemini dollars are created at the time of withdrawal from the Gemini platform and redeemed or “destroyed” at the time of deposit into the Gemini platform.
The exchange said that, since the total capitalization of the stablecoin market is comparatively small and not suitable for large-scale trading, it is also soliciting institutional investors and over-the-counter traders to sign up as market makers.