HUSD is a token issued by Huobi, that was transitioned from its stablecoin system to an ERC-20 token through a partnership with crypto startups Stable Universal Limited and Paxos Trust Company.
Launched in October 2018, HUSD was an integrated solution targeting the multiple stablecoins on Huobi Global. It helped the users make investment decisions among multiple stablecoins and save costs when trading stablecoins. When a user deposited any kind of stablecoins, they were shown as HUSD in their account. A user might withdraw any kind of stablecoin; when the balance amount of a certain stablecoin was not sufficient in their account, they might choose any other stablecoin with enough balance amount to withdraw. The HUSD solution supported four kinds of stablecoin: Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollars (GUSD).
In July 2019, Huobi upgraded the HUSD solution, transitioning it from a stablecoin basket to an independent, USD-pegged stablecoin, HUSD Token. HUSD Token is issued by Stable Universal, with a 1:1 USD peg. Paxos Trust Company acts as the USD asset custodian, and HUSD Token is subject to a monthly attestation.
Summary of Change
- Before the upgrade process commenced, there was a transition window period whereby all HUSD holders could choose to transition their HUSD, 1:1 to any of the following stablecoins: PAX, TUSD, and USDC. Alternatively, could users opt to continue holding HUSD funds during this period, they were agreeing to upgrade their HUSD funds to the new HUSD Token.
- After the transition period was over, it was likely that the remaining HUSD would upgrade to HUSD Token. The upgrade process was as follows: Huobi Global envisioned it would upgrade all remaining HUSD to US dollar and mint HUSD Tokens before re-depositing HUSD Tokens into Huobi Global at a 1:1 exchange rate with USD.
- After the upgrade was completed, Huobi would launch trading of PAX/HUSD, TUSD/HUSD, and USDC/HUSD trading pairs.
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