The crypto financial services company Huobi and the firm’s stablecoin issuer Stable Universal have published monthly HUSD attestation reports. The audits indicate the funds that back Huobi’s stablecoin are kept in cash in U.S. money market accounts in order to ensure the 1:1 ratio with USD.
HUSD Monthly Attestations
On Thursday, more than $117 billion is held in stablecoin protocols and the ninth-largest stablecoin in terms of market valuation, Huobi’s HUSD, represents over $498 million. Out of today’s $68 billion in global stablecoin trade volume, Coingecko’s stablecoin by market cap stats show HUSD has seen around $61 million in 24-hour trades. Following the trend of stablecoin producers publishing their latest stablecoin attestation reports, Huobi and the token issuer Stable Universal have also provided monthly audits.
HUSD attestation reports stem from the months of January 2021 to May 2021, and the latest report discloses that reserves for HUSD are secured in money market accounts located in the United States. Furthermore, monthly audits from every month in 2019 and 2020 are also provided. “To ensure each HUSD is backed by U.S. dollars at a 1:1 ratio, a monthly audit of HUSD is conducted by an independent US accounting firm to verify that the HUSD tokens in circulation are consistent with the amount of USD held in reserve accounts at U.S. banks,” the web portal stcoins.com emphasizes. The web page also says:
Every attestation report has been published since the launch of HUSD Token.
Stablecoin Providers Hope to Gather More Trust With Reserve Audits
The HUSD attestation reports come at a time where stablecoin providers have been providing transparent audits to the public. In July, Circle and the Centre Consortium’s accountant Grant Thornton published a USDC attestation report. Circle’s USDC report revealed that the backing of USDC was kept in segregated accounts held in USD-denominated assets. Following Circle, Paxos Standard presented its attestation report and Dan Burstein, the chief compliance officer of Paxos, criticized stablecoin providers that are far less transparent.
In April, Tether Holdings Limited stated that tether (USDT) tokens have “always been fully backed.” The stablecoin provider’s assurance report was signed by Moore Cayman on March 26, 2021, and compiled on February 28, 2021 “at 11:59 PM UTC.” Today, tether (USDT) still commands the largest market cap with $61 billion. For comparison, Huobi’s HUSD stablecoin represents only 0.816% of USDT’s market valuation on August 5.
What do you think about Huobi and Stable Universal’s HUSD attestation reports? Let us know what you think about this subject in the comments section below.
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Author: Jamie Redman