Crypto Exchange Huobi Now Lets Users Swap Between 4 Different Stablecoins

Huobi, the Singapore-based cryptocurrency exchange, has just launched a solution that enables users to switch between different types of fiat-pegged cryptocurrencies, or stablecoins, in event of market fluctuations.

Using HUSD they can deposit one of the four stablecoins and withdraw a different stablecoin of their own choice.

Huobi's chief operating officer, Robin Zhu, further explained that HUSD is not itself a stablecoin or protocol, but rather, a medium that facilitates exchange between the different stablecoins.

Whether the user can withdraw all their assets in a single stablecoin depends on there being sufficient supply in the pool.

"In those circumstances, we will buy back these stablecoins from their issuers into the pool," he said.

Huobi will not list trading pairs for every stablecoin it supports against major crypto assets such as bitcoin and ethereum.

Notably, the most established stablecoin to date, tether - one that has been at the center of rumors over the reliability of its U.S.-dollar peg - is not included in the pool.

According to Zhu, HUSD allows users to withdraw the stablecoin asset they consider is most stable, since the market has recently seen several assets wavering from their pegged fiat currency's value.

"The market could see over hundreds of stablecoins in the future," he noted.

"While we welcome the integration of more regulated stablecoins, we hope the use of HUSD could help maintain the stability of this market."