Huobi Announces Support for USDT Stablecoins on TRC-20 Network

Cryptocurrency exchange Huobi announced the coordination of actions with Tether and the continuation of cooperation with TRON.

Huobi has announced that it will coordinate with Tether to perform the swap when converting Ethereum ERC-20 to TRON TRC-20. The companies issued the notice amid Chinese market concerns about the reliability of the TRC-20 network.

“In order to meet the multifaceted needs of users for stable trading, Huobi Global is going to support USDT on TRC-20 (USDT-TRON), jointly launched by TRON and Tether. Huobi Global will support three forms of USDT: Omni, ERC-20, and TRC-20,” the exchange said in a statement.

By data crypto reviewer Colin Wu, some over-the-counter crypto sellers in the Chinese market have stated that they no longer accept USDT TRC-20 and need users to submit USDT ERC-20 issued on the Ethereum blockchain to the exchange to trade. The analyst believes that this behavior on the part of OTC sellers in relation to the TRC-20 network is partly caused by concerns spreading in the crypto community about the liquidity and reliability of the TRON blockchain, as well as related projects.

Wu suggested that the decision of Chinese OTC sellers may have been influenced by the opinion of the analytical company Chainalysis, which believes that issuing USDT on the TRON network does not comply with anti-money laundering requirements.

Team Tether confirmed on Twitter, a message about coordinating joint actions with the Huobi exchange on converting ERC-20 to TRC-20, and also that the total supply of USDT in the market will not change. Immediately after the statement was made public on social media, a columnist for Whale Alert informedthat $400 million was transferred from Huobi to Tether Treasury.

Earlier, analysts at Cornell University published a report stating that a drop in user confidence in stablecoins could lead to a collapse in the bond and US Treasury markets.