Huobi Global, one of the most important exchanges in the whole world, has announced its new initiative on stablecoins. Huobi will try to integrate the four distinct stablecoins available on the market today under just one name: Huobi Dollars (HUSD). They will do this with the objective of centering the user in the pegged trait of the cryptocurrency and not in which one of them he is holding.
Huobi And the Stablecoin Problem
Huobi, just like every other exchange that listed Tether among its trading pairs, suffered a lot with the latest drop of it. With the sudden fall of the price of Tether, Bitcoin prices went through the roof enjoying a premium and causing an artificial unbalance of prices.
Supposedly, the attack was initiated by a fake announcement that said Tether was going to be delisted from Binance, the biggest exchange in the whole cryptocurrency world, that holds more than $700 million dollars of the said cryptocurrency.
But it was later informed by a Bitfinex employee that everything was planned by a banking organization called IMMO, at the disposition of the Rothschild family. But unlike the other exchanges, Huobi has a plan to avoid this happening once again.
Huobi’s Final Solution
Huobi has devices a system that will solve two problems: the new user’s confusion when wanting to buy a stablecoin and finding a plethora of choices, not knowing which one buy and trust, and also the trading premium when any of the stablecoins listed loses its peg.
The system will list the four available stablecoins as HUSD. For example, if you deposit one Gemini dollar, or one Paxos Standard, one True USD or one Universal Dollar, it will be credited as a Huobi Dollar in your account.
Hubi will allow also withdrawals of HUSD in any of the four available stablecoins in the market. If any stablecoin fails to maintain its peg, Huobi will examine its status and will consider removing it from their platform. The standards for this process have not been announced just yet.
A Pragmatic Focus
Despite the fact that multiple stablecoins have been launched in the market recently, users are still confused about which one to trust with the recent drop of Tether, the most famous stablecoin.
The solution of Huobi, while being highly unorthodox, could help traders to focus on other important things while the same exchange guarantees the peg of every stablecoin listed in their platform. A pragmatic solution that will be liked by some, and disliked by others.