HUSD is an Ethereum based token that is 1:1 pegged with the US dollar also known as a stablecoin. The token was issued by Stable Universal, an entity that claims to follow US regulations. Monthly audits of HUSD are conducted by an independent US audit firm. HUSD token is backed by US dollars in a ratio held in a US trust company.
What is HUSD?
The HUSD token is issued by Stable Universal, an entity that claims to follow US regulations. Monthly audits of HUSD are conducted by an independent US audit firm. The token is pegged 1:1 with the dollar, and backed by US dollars in a ratio held in a US trust company.
How does it work?
HUSD tokens are generated when stablecoin holders deposit USD into the HUSD Trust Company Vault. Those tokens are then burned when stablecoin holders withdraw USD from the Trust Company Vault. The process of withdrawing USD takes some time, while deposits can be completed within minutes.
HUSD Benefits.
The HUSD token was created to diversify risk, decrease volatility, and increase convenience for investors and traders in the cryptocurrency market. To achieve its goals, the HUSD token is backed 1:1 with US dollars. This means that one HUSD can be exchanged for one US dollar at any time.
Stable Universal has outlined some advantages of using the HUSD token:
- One HUSD can be exchanged for one US dollar at any time
- USD is redeemable at any time
- Low cost of transactions
- Financial liability protection against hackers and government seizure
- A transparent accounting system with monthly audits
- An easy way to store money digitally
Conclusion
Thanks to HUSD, people can use USD in any country and still use the same technology they’ve come to trust and love. HUSD is a stablecoin, so it doesn’t suffer from the volatility of cryptocurrencies, such as Bitcoin, Ethereum or Litecoin. And best of all, HUSD is completely decentralized and governed by smart contracts.
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