Huobi Global will delist the U.S. dollar-pegged stablecoin HUSD on Oct. 28 and convert users' assets to Tether (USDT).
"As part of our continuous efforts to promote the healthy development of the blockchain ecosystem, Huobi Global will be ceasing the HUSD trading service and delisting HUSD in compliance with Article 11 of Huobi Global Token Management Rules," the exchange said.
Huobi said the delisting will start at 8:00 UTC on Oct. 28. At that time it will cease HUSD deposits and withdrawals and cancel any open orders related to the stablecoin. Meanwhile, the exchange will convert users' HUSD to USDT at a 1:1 ratio, it said, noting that it plans to complete this conversion before Nov. 4.
HUSD, a centralized stablecoin built on the Ethereum ERC-20 token standard, lost its dollar peg on Oct. 11 and fell as low as $0.90. The stablecoin, which has a market capitalization of nearly $187 million, is controlled and issued by Hong Kong-based Stable Universal despite sharing the same name as the exchange known as Huobi.
Huobi Global made two key announcements in the days before HUSD lost its peg, although the extent to which they may have influenced the stablecoin's loss of parity and ultimate delisting on the Huobi exchange remains unclear.
First, Huobi Global said on Oct. 8 that it would sell its majority stake in the company to Hong Kong-based About Capital Management. News publication Wu Blockchain reported that Tron founder Justin Sun was the "real" buyer behind Huobi Global's stake sale, a claim that Sun denied in an exclusive interview with The Block. Sun said he is "only an advisor" to Huobi.
Secondly, the exchange announced on Oct. 10 that it would delist 21 HUSD trading pairs the same day, only saying the move was part of its continuous efforts to offer customers a "better trading experience."
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.