Category Archives: BECON

Auto Added by WPeMatico

Tether’s Rivals Continue to Gain Stablecoin Ground

The emergence of stablecoins continues to provide a glimpse of hope to cryptocurrency investors despite the market’s steep decline since its all-time high in 2017.

However, not too long ago, this confidence began to shift away from Tether (USDT) – the largest stablecoin by capitalization, to others such as Huobi (HUSD), USD Coin (USDC), True USD (TUSD), Paxos Standard Token (PAX), and Gemini Dollar (GUSD). Many of those in the list have seen rising premiums against USDT in recent months.

In a recent stablecoin conference organized by BECON, which was held in New York on Monday, General Counsel of Huobi’s Global Institutional Joshua Goodbody discussed the important roles stablecoins play in the crypto-market affairs. In his opinion, they serve as bridges between the fiat world and the world of cryptocurrencies.

Since its launch, one of Tether’s rivals, HUSD, has proven to be popular among users, says Goodbody.

Stablecoins are perceived to mimic the qualities of real-world fiat properties. Therefore, they establish a baseline of trust for investors, and traders of cryptocurrencies to hedge. This was the objective in mind when Huobi proposed its stablecoin in late October as a complementary solution to help make investment decisions among multiple stablecoins and save costs when trading stablecoins.

Goodbody during the conference made it clear that they “believe the recent developments of stablecoins are positive for the industry and Huobi decided to support these developments proactively by launching HUSD”. The Stablecoin HUSD integrates the properties of four other major stablecoins to include PAX, TUSD, USDC, and GUSD.

As an aggregator of stablecoins, the HUSD interfaces between any of the four supported stablecoins and gives traders the flexibility of switching to any of them on a 1:1 ration at any point in time. Goodbody said that they “provide the ability to deposit any of the four supported coins as HUSD and receive a 1:1 balance of HUSD”. Further, these stablecoins can also be traded with six other cryptocurrency pairs on the Huobi exchange. These include BTC, USDT, ETH, and EOS.

HUSD is not a particular token or coin on the blockchain, but a mere service being offered by Huobi Global. The way the product works is that, when any stable coin is deposited into a user’s account with the exchange, they are registered as HUSD balances. This gives a pseudo-interoperability between the four stable coins currently being supported. As described by the exchange when the balance on a stablecoin type is low, users can simply withdraw with another with sufficient balance.

In other news, Coinbase decided to launch an over-the-counter (OTC) trading desk earlier this month for institutional investors and in an interview, USDC is described as “one of the most liquid stablecoins” on the market to help stem volatility.

To a large extent, stablecoins play an important role in stabilizing the market. So far, the stablecoin markets have provided a safety net-like effect for investors and traders whose portfolios are being devalued by the current market crash, thereby acting as a soothing balm to the hysteria in the cryptocurrency ecosystem.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

 

The post Tether’s Rivals Continue to Gain Stablecoin Ground appeared first on BitcoinNews.com.