In my last article about Tether’s fall I had talked about the possibility of other stablecoins gaining its market share in the coming days. And now the foundation for it to happen has been laid by Huobi. The operator of one of the largest cryptocurrency exchanges in China today announced the listing of four new stablecoins on its platform, namely TUSD, GUSD, USDC and PAX. With this move it has walked onto the path adopted by its rival exchange OKEx, which already has the 4 coins listed on its platform.
The new listings were announced by the company today. In its announcement company said that all these coins will be available on its platform from 19th of October (i.e. two days later). Given below is a brief introduction of all these stablecoins (except for their price, which is obviously around $1):
- TUSD or TrueUSD is a stablecoin trusted by many banking partners;
- GUSD or Gemini Dollar is the newest stablecoin introduced by the Gemini exchange of Winklevoss Twins. Gemini is touting it as the “first regulated stablecoin”, and it’s regulated by the New York State Department of Financial Services (NYSDFS);
- USDC (aka USD Coin) is the stablecoin introduced by crypto unicorn Circle;
- And Paxos Standard (PAX) is a stablecoin issued by Paxos Trust. Like GUSD it’s also under the supervision of NYSDFS.
For those of you who don’t know about why is this happening, here’s a quick refresh of the events: the price of Tether went down significantly in last few days, thus eroding its USD peg to in a big way. At one point 1 Tether token was worth 85 cents only. This is certainly not expected from a stablecoin, because in most cases these coins serve the role of a fiat currency (aka US dollar). The price fell due to some rumors and a large amount of distrust that was building up around Tether from quite some time. And when it fell, it further eroded the trust element of Tether. Therefore, both individuals and exchanges started adding more and more stablecoins to their kitties for avoiding total reliance on Tether. Among exchanges, OKEx and Huobi are the first ones to do so.
Now It will be interesting to see which other exchanges walk into the shoes of these two exchanges and list new stablecoins on their platforms. We’ll keep you updated as it happens, so keep checking our updates.