HUSD to Compete with Tether
Houbi, is a leading cryptocurrency exchange based in Singapore and has been in existence since 2013. The exchange has launched a new stablecoin called HUSD earlier today. Its value will be linked to the U.S. Dollar. Houbi announced the launch both on Twitter and in a blog post. This is the second cryptocurrency Houbi has released, following Houbi Token their native exchange token.
🚀🚀We're thrilled to announce that $HUSD Token, Huobi's first true stablecoin, has launched!— HuobiGlobal (@HuobiGlobal) July 22, 2019
Our Tether alternative is the first regulated #stablecoin fully listed & integrated with our system.
🔥Get yours at: https://t.co/VRD8XdnYde
Why Stablecoins Matter
Tether, the first cryptocurrency to digitally represent the dollar in the cryptospace has been in existence since January 2015. It is important to note that Tether was created by iFinex, the same parent company of the exchange Bitfinex. Since its launch there have been quite a few controversies. Some have speculated that it was not fully backed by a cash reserve as promised. Others claimed that it was used to manipulate the price of Bitcoin and cryptocurrencies. These and other allegations drew in the attention of the New York Attorney General and regulators.
Despite the controversies, Tether remains highly popular in the world of cryptocurrencies and is currently the 7th cryptocurrency by marketcap. Seeing the success of Tether, many competitors have launched stablecoins. This includes USD Coin (USDC), True USD (TUSD), and the Winklevoss Twin's Gemini Dollar (GUSD).
HUSD will have its dollar reserves held by the Paxos Trust Company, a fiduciary and qualified custodian under the New York State Department of Financial Services.
What About Tether?
Huobi still has Tether listed as a trading option on the platform and currently has no plans of delisting it. The exchange may, however, make HUSD more visible and perhaps emphasize it in a way in the future.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado