Huobi Crypto Exchange Will Delist Native Stablecoin HUSD
- Following the depegging of Terra stablecoin (now USTC), Seychelles-based crypto exchange Huobi has decided to delist its native stablecoin HUSD from its platform.
- The delisting is “in compliance with Article 11 of Huobi Global Token Management Rules,” reads an announcement. The Article gives Huobi the power to inspect its project team at any time.
- The exchange explained that the users with their funds stored in HUSD will have their assets auto-converted into the world’s largest stablecoin USDT at a 1:1 ratio.
Amid the increasing regulatory pressure on stablecoins after Terra’s UST depegging, Seychelles-based crypto exchange Huobi has decided to delist its native stablecoin HUSD from its platform.
According to a recent announcement shared by the exchange on October 27, the delisting is “in compliance with Article 11 of Huobi Global Token Management Rules.” The article gives Huobi the power to inspect its project team at any time for reasons it finds necessary, without any prior notice.
The exchange explained that the users with their funds stored in HUSD will have their assets auto-converted into the world’s largest stablecoin USDT at a 1:1 ratio.
The listing of the native stablecoin will take effect on October 28 at 8:00 UTC. However, Huobi expects to complete the auto-conversion of HUSD into USDT by November 4.
The announcement reads:
“The deposit and withdrawal services for HUSD will be closed at 08:00 (UTC), Oct 28, 2022. Please plan your HUSD deposits/withdrawals accordingly. Please also cancel any open HUSD orders immediately.”
According to the announcement, all open HUSD orders at said delisting time will automatically get canceled and the relevant assets will be credited to users’ spot accounts in the form of USDT.
It is important to note that HUSD is Huobi’s native fiat collateralized stablecoin backed by US dollars held in Paxos-owned bank accounts. The token currently trades for around $0.98, a bit down by its ideal $1 mark. In August, a few months after the massive depegging of Terraform Labs’ Terra USD (UST) stablecoin, HUSD witnessed a major de-pegging episode, going down to $0.90. However, it managed to quickly recover back to $1.00 within 12 hours at the time.
The decision coincides with the recent shadow ownership of the company by Tron founder Justin Sun, who was confirmed to have taken on an advisory role at Huobi earlier in October. Notably, Huobi founder Leon Li, the majority shareholder of the company, reached an agreement with Hong Kong-based investment firm About Capital Management to sell his entire stake for over $1 billion.
Justin Sun is reportedly the core investor of the M&A fund, making About Capital’s buyout vehicle the controller of a majority stake in Huobi Capital.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
