Crypto exchange Huobi Global is cutting ties with its closely linked stablecoin, the troubled asset HUSD.
In a notice to users, Huobi, the top trading venue for the $219 million market-cap stablecoin, cited its rules for performing “regular inspection” on listed assets. Huobi, a top 10 exchange by trading volume that recently agreed to be acquired by About Capital, said it will begin delisting HUSD at 8:00 UTC Friday and will in the interim begin converting assets to USDT on a 1:1 basis.
HUSD is a relatively minor stablecoin that Huobi launched in 2018 as a “stablecoin solution” that accepted other dollar-pegged tokens as backing. It was issued by Stable Universal but was heavily marketed by Huobi as a token that was “exclusive” to its own exchange when it launched.
The move continues a wave of consolidations and jockeying in crypto’s $140 billion stablecoin subsector that has long been dominated by USDT. But an influx of newcomers has recently shaken that grip.
HUSD has had its own problems. In August, the stablecoin briefly lost its dollar peg and crashed 8% after its issuer closed “several accounts” due to regulatory concerns.
A representative for Huobi did not immediately respond to CoinDesk.