About

HUSD is a fiat-collateralized stablecoin that offers the advantages of transacting with blockchain-based assets while mitigating price risk. The HUSD are issued as ERC-20 tokens on the Ethereum blockchain and are collateralized 1:1 by USD held in Paxos-owned US bank accounts.

History

HUSD first launched in October 2018 as a stablecoin solution available on Huobi Global exchange. The solution aimed to aggregate four stablecoins including Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC) and Gemini Dollars (GUSD), into one token, HUSD, that could be traded accross Huobi's exchange. Users could deposit and withdraw any of the four stablecoins in their Huobi account, which appeared as an HUSD balance.

However, Huobi observed that customers did not want to trade using HUSD because its pricing was not transparent. Furthermore, seeing issues with Tether, Huobi wanted its stablecoin to be independent of its exchange. In July 2019 a Huobi Capital-backed startup named Stable Universal launched a new ERC-20 HUSD stablecoin, using Paxos as its custody partner. Huobi has since transitioned its old stablecoin to the new Stable Universal backed ERC-20 HUSD stablecoin.