Huobi Adds Four Stablecoins, Tether Faces Strong Competition

The assets will be available for trading on October 19th.

PAX, a freshly-launched stablecoin, is pegged to the US Dollar and regulated by the NY State Department of Financial Services. Users can trade with both denominated and endorsed by the US Dollar assets.

GUSD, claiming that it is the first regulated stablecoin on the market, was recently released by Gemini exchange. The stablecoin is also under the New York State Department of Financial Services supervision. Each GUSD costs precisely $1.00, as with most fiat-pegged stablecoins.

TUSD is a slightly different form of stablecoin. It includes a collateral principle, which acts as security for loans. This is why TUSD is widely adopted by the banking industry.

Circle’s USDC bridges the gap between different financial institutions and customers by offering open access and membership. It also includes tools for tackling some crypto market issues.

Huobi is also home to Tether’s stablecoin – the USDT. The digital asset is claimed to be fully backed by currency reserves, but markets saw a 3.5 percent decline from the supposed $1,00 value, to $0.965.

It showed a slight downward deviation to around $0.93 but quickly recovered to $0.98. Tether Limited has been in the financial geeks’ spotlight, based on concerns if Tether has the financial reserves to fully back its token.

Tether has been a stablecoin market hegemon until the launch of the four new stablecoins. And although Tether holds 98 percent of the daily stablecoin trading volumes, the new US Dollar-pegged tokens are acting as a direct competition to the USDT. Both PAX, GUSD, TUSD, and USDC have been listed on OKEx’s exchange, making Tether (USDT)’s job sustaining its reign over stablecoins much harder.