FTX is working on its own stablecoin, while Huobi delists HUSD

    29 Oct 2022

    FTX plans to issue its own stablecoin at some point, CEO Sam Bankman-Fried said without providing further details. He also hinted at a potential acquisition of the crypto exchange Coinbase. Meanwhile, crypto exchange Huobi said it would delist the stablecoin HUSD.

    Crypto exchange FTX is reportedly working on creating a stablecoin. In an interview with The Big Whale, the CEO of the Bahamian-based exchange Sam Bankman-Fried confirmed that it is possible. When asked directly, Bankman-Fried’s response was definitive, “Yes, it is very likely.”

    “We know how to create a stablecoin. We’re just thinking about the best partner to do it with,” the CEO said, touting FTX’s ability to float a stablecoin.

    However, when asked to expound further on the stablecoin project, he just replied with “you’ll be hearing from us again soon” instead.

    In addition to a projected FTX stablecoin, the company’s CEO suggested that FTX may become a bank in the future and pointed to Coinbase as a potential acquisition target for his company.

    During the media session, Bankman-Fried weighed in on the increasing number of acquisitions his company has undertaken. According to him, these transactions have helped prop up the crypto marketplace and consolidate FTX’s position in the US. Bankman-Fried foresees FTX gaining more market share in the space due to the increased visibility gained via these acquisitions.

    The FTX CEO also clarified that the exchange is not currently interested in acquiring Robinhood. Instead, the crypto exchange’s focus remains squarely on growing organically.

    Meanwhile, crypto exchange Huobi Global said it will delist the US dollar-pegged stablecoin HUSD and convert users’ assets to Tether (USDT).

    Huobi claimed the delisting will start on Oct. 28. At that time, it will cease HUSD deposits and withdrawals and cancel any open orders related to the stablecoin. The exchange will convert users’ HUSD to USDT at a 1:1 ratio, it said, noting that it plans to complete this conversion by Nov. 4. 

    HUSD, an ERC-20 centralized stablecoin, lost its dollar peg on Oct. 11 and fell as low as $0.90. The stablecoin, with 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.

    HUSD was already de-pegged from the US dollar in August. The stablecoin, associated with the Huobi Global crypto exchange, had fallen to $0.89, an 11% drop from its planned $1 peg. However, HUSD restored then its dollar peg in a few days.

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