Nervos, the public blockchain eyeing to rival Ethereum for China’s DeFi market, is integrating the HUSD stablecoin, according to an announcement on Dec 8. HUSD is a dollar-pegged stablecoin issued by Stable Universal Limited, an Huobi-backed venture. Notably, the HUSD stablecoin will debut as the first of its kind within the Nervos blockchain; before this milestone, HUSD was only supported by Ethereum.
.@Stablecoin_HUSD is coming to Nervos 🌱
Stablecoins play a vital role in many DeFi use cases— as a payment token, a store of value, and a bridge between fiat currencies & cryptocurrencies
— Nervos (@NervosNetwork) December 8, 2020
The announcement highlights HUSD’s value proposition within the Nervos ecosystem; some of the featured use cases include trading, payments, commerce, and remittances. Stable Universal CEO Frank Zhang welcomed the support by Nervos, noting that the new expansion is in line with HUSD’s vision to scale DeFi access and the blockchain ecosystem in general. Zhang said,
“We are enthusiastic that this integration bids well for more future projects as we tackle more innovative ways to introduce users to the DeFi ecosystem.”
HUSD Support on Nervos
The HUSD stablecoin is pegged on a 1:1 ratio against the dollar; its debut on Nervos means that the same ratio will hold. As such, the stablecoin will be issued based on Nervos’ SUDT technical standard; this is the native ‘ERC-20’ of the Nervos blockchain network. With the integration set for completion early next year, Nervos users will be able to deposit USD and receive HUSD on a 1:1 basis.
This stablecoin will be functional on both the Nervos Common Knowledge Base (CKB) and its permissionless layer-1 blockchain. Other than the previously highlighted use cases, the HUSD stablecoin is expected to be a hedge against price volatility. Nervos co-founder, Kevin Wang, shared optimistic sentiments on the milestone to support HUSD,
“Stablecoins have been a priority for Nervos as we build out our ecosystem to support a wide variety of DeFi projects. HUSD has gained remarkable traction in establishing its place as one of the top stablecoins in the market in such a short time, so we’re excited to see what results from this continued collaboration.”
Despite being a recent innovation, the HUSD stablecoin has been making breakthroughs to feature among the top five stablecoins as of press date. The coin enjoys a market cap of over $230 million, while the total issued HUSD stablecoins is past the 2 billion mark since its launch back in July 2019.