By On July 25th, Huobi’s Thailand-based subsidiary announced that it is planning to launch its own public blockchain network focused on decentralized financial (DeFi) services.
Huobi, a prominent blockchain services provider and cryptocurrency exchange operator, announced the planned offering dubbed “Huobi Finance Chain”. This project intends to allow financial institutions, businesses, and exchanges to be able to launch their own blockchains, tokenized assets, and DeFi services.
The report stated:
“Among other applications, the project will have the potential to host lending services, debit services, stablecoins, security token offerings (STOs) and other means of asset issuance, decentralized exchanges (DEXs), real-world payment services, and more.”
This project from Huobi Thailand is expected to launch in Q3 2019, offering both regulated crypto-crypto trading and fiat on-ramps.
Teaming up with Nervos
In the tech side of this initiative, Huobi Thailand would be working with blockchain network Nervos, which provides a base proof-of-work blockchain, the premise of the protocol layer which offers scaling and other solutions.
Together, the two entities would build “FinanceChain,” which would allow financial firms and exchanges to deploy their own blockchains, tokenize assets and offer DeFi services.
FinanceChain would also support hosting of lending services, stablecoins, security token offerings (STOs) and decentralized exchanges (DEXs), as well as payment services.
Kevin Wang, the co-founder of Nervos, said:
“The recent wave of high-profile blockchain projects from traditional institutions such as Libra and JPM Coin is a sign of a bigger shift looming in the financial services industry. As more financial institutions and enterprises realize the potential of blockchain technology, we want to provide the secure and trust-driven infrastructure they’ll need to issue their own decentralized assets and deploy DeFi services in a compliant and ‘low risk’ environment.”
Huobi Finance Chain would also support decentralized identifier (DID) and provide identity protocols such as know-your-customer (KYC) verification, to ensure projects comply with anti-money laundering rules. This is meant to make the network “regulator-friendly,” while further enabling regulators to contribute to the network as validators.
The open-source code is expected to be made available in Q3 2019, followed by a testnet launch in Q1 2020 and a full mainnet launch in the second quarter.
Huobi Goes Global
Huobi Thailand is planning to utilize Huobi Group’s cloud platform, a network launched last year to ease the construction of digital asset exchanges based on Huobi’s existing platform.
The cloud supports Huobi’s worldwide expansion plan, allowing for the development of trading venues with order matching, asset management, wallet and clearing systems established by Huobi Global, and giving partners access to its liquidity and market data.
This announcement points to Huobi Cloud having been fully implemented, to help launch over 120 exchanges globally, in nations that include Russia, the UK, Hong Kong, Singapore, Indonesia, Canada, and Brazil.Huobi’s revolutionary move follows a similar development evinced at the world’s largest cryptocurrency exchange, Binance. Binance recently unveiled its own public blockchain network called “Binance Chain’’, that aims to facilitate faster token issuance and simple asset transfer.
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