Singapore-based Huobi to Add Four More Stablecoins in the Next Few Days

Omar Faridi
  • Huobi will add stablecoins: Paxos Standard Token (PAX), True USD (TUSD), Circle’s (USDC), and Gemini exchange’s (GUSD) by Oct 19th.
  • OKEx announced yesterday that it will also add the same stablecoins as concerns about Tether (USDT) escalate.

Singapore-based cryptocurrency exchange, Huobi, recently announced that it will start listing four USD-pegged digital assets this week - which makes it the latest top 10 exchange to add more stablecoins as there are now heightened fears, or concerns, in the crypto market regarding Tether (USDT) and Bitfinex’s operations.

PAX, TUSD, GUSD, USDC Added

On Tuesday (October 16th), Huobi Global published a blog post in which it noted that deposits of Paxos Standard Token (PAX), True USD (TUSD), Circle’s (USDC), and Gemini exchange’s (GUSD) would be available on its exchange starting from October 19, 2018 (GMT+8).

Notably, Huobi Global, which “provides trade and investment service of over 100 digital assets”, has requested institutional investors, over-the-counter (OTC) market makers, and large acceptance dealers to help increase the “relatively small circulation” in the crypto markets of its soon-to-be listed stablecoins.

In its blog post update, Huobi also mentioned that products supporting the stablecoins are currently available and can be accessed through the Huobi Wallet - which allows users to add the coins as it reportedly has the “complete relevant settings.”

"Detailed Plans" For Newly Added Stablecoins

Additionally, Huobi OTC is expected to release a “detailed plan” for the new stablecoins soon. As most crypto enthusiasts would know, Huobi’s exchange is one of the world’s most active digital asset trading platforms as it currently ranks fourth among leading exchanges by trading volume.

Huobi is also one of the largest digital currency exchanges for trading Tether (USDT) which still remains by far the most dominant stablecoin - despite the recent increase in uncertainty surrounding its banking operations and rumors of Bitfinex becoming insolvent.

Livio Weng, the vice president of Huobi Group, told Coindesk

Tether is one of the biggest stablecoins in the market, and realistically it will take some time before other stablecoins can catch up. We currently have no plans to restrict trading, deposits, or withdrawals in regards to Tether. However, in the interest of providing users with more choice, we are also in the process of listing several new stable coins.

Livio Weng

Tether Releases A Statement

On Monday (October 15th), USDT experienced a massive selloff as fears, or uncertainty, regarding whether Tether’s USD holdings were enough to back the supply of its stablecoin escalated. Notably, USDT’s price fell to an 18-month low yesterday as it had reportedly been trading as low as $0.86 on Kraken.

Leonardo Real, Tether’s newly appointed chief compliance officer, clarified on Monday: 

Tether is the leading provider of tokenized fiat currencies and is listed on many exchanges worldwide. We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities. In June 2018, a report from Freeh Sporkin & Sullivan, LLP (FSS), based on a random date balance inspection and a full review of relevant documentation of bank accounts, confirmed that all Tethers in circulation as of that date were indeed fully backed by USD reserves.

Leonardo Real

As CryptoGlobe reported on October 15th, Malta-based OKEx announced that it would list four additional stablecoins: PAX, USDC, TUSD, and GUSD.

QuadrigaCX Has Sent Its Remaining Crypto to 'Big Four' Ernst & Young

The embattled Canadian cryptocurrency exchange QuadrigaCX has recently sent the remaining cryptocurrency it had in its hot wallets to ‘big four’ auditor Ernst & Young, which has been monitoring the proceedings in its creditor protection case.

According to an official report Ernst & Young released called the “Second Report of the Monitor,” QuadrigaCX sent nearly all its cryptocurrency to the auditor on February 14, after conducting a few test transactions to make sure it wouldn’t send them to the wrong address.

In total, the cryptocurrency exchange transferred 51 bitcoin, 952 ether, 822 litecoin, 33 bitcoin cash, and 2,033 bitcoin gold to the auditor. At press time, these cryptocurrencies are worth little over $410,000, an amount Ernst & Young is set to “hold the cryptocurrency in cold storage pending further order of the Court.”

The test transaction QuadrigaCX has made are notable, as earlier a costly blunder saw it inadvertently transfer 103 BTC ($468,000) to its cold wallets. The exchange has been unable to access its funds in cold storage since its founder and CEO Gerald Cotten unexpectedly passed away in India.

Ernst & Young’s report has also given the exchange’s creditors updates on its fiat holdings. It notes there are thee main sources: a payment processor called Costodian that holder about $25 million CAD in bank drafts, Stewart McKelvey which holds about $5.8 million CAD in bank drafts, and other amounts held by various third-party processors.

Costodian has reportedly already transferred about $20 million CAD to Ernst & Young, but is holding onto the remainder, and has claimed QuadrigaCX owns it $778,000 CAD in processing fees.

$145 Million Locked Away

The Canadian cryptocurrency exchange, as mentioned above, has been locked out of its cold storage wallets since its founder and CEO passed away, as he managed the operation through his laptop.

His wife Jennifer Robertson has since filed an affidavit where she revealed Cotten was single-handedly managing the exchange’s transactions, and that after he passed away no one was able to do so. Since then, the Supreme Court of Nova Scotia has granted QuadrigaCX creditor protection, and appointed Canadian law firms Miller Thomson and Cox & Palmer to represent its customers in the upcoming proceedings.

As CryptoGlobe covered, QuadrigaCX has already run out of funds, and a look into Cotten’s way of managing the exchange in the past has suggested users’ funds can be stored in paper wallets. The exchange’s downfall has cost at least one cryptocurrency enthusiast his $420,000 life savings.

Notably, blockchain researchers have released data that suggests QuadrigaCX didn’t have any funds stored in cold wallet, and even found suspicious transactions to other exchanges, including Poloniex, Bitfinex, and ShapeShift.