Huobi Global Ltd. has announced its plan to discontinue ten trading pairs, particularly those associated with the USDD stablecoin.
The TRON DAO Reserve backs the USDD stablecoin and has a significant involvement from digital asset entrepreneur Justin Sun. Starting from June 29th, Huobi will remove trading pairs that combine ADA (Cardano), SOL (Solana), APE (ApeCoin), MATIC (Polygon), FIL (Filecoin), and ETC (Ethereum Classic) with USD.
Therefore, the exchange will no longer support bitcoin-based pairs involving ARPA, GAS, QTUM, and ZKS. These changes aim to enhance the trading experience for users. Huobi, originating from China, is a major player in spot and derivative trading of digital assets.
Legal actions by SEC and delisting decisions
The decision to delist these trading pairs follows recent legal actions by the SEC, which categorized most of these coins as unregistered securities in litigation against exchanges like Binance and Coinbase.
Robinhood and eToro have previously phased out several of these coins. Stablecoins are digital tokens designed to maintain a stable value, often pegged to assets like the US dollar.
However, they typically have cash reserves or collateral assets to ensure stability. Stablecoins are highly traded in cryptocurrency as they facilitate money transfers between exchanges and hedge against price fluctuations.
USDD, backed by the TRON DAO Reserve, is the eighth-largest stablecoin by market capitalization, estimated at $750 million. Huobi is the most commonly used platform for buying and selling USDD, according to CoinGecko, a crypto market analytics company.
The TRON DAO Reserve supports the USDD stablecoin with various digital assets, including Bitcoin, Ethereum, and TRON. The Decentralized Autonomous Organization (DAO) utilizes blockchain technology to expedite voting and transaction processes.
Rumors suggest that Justin Sun, the creator of the TRON blockchain and a consultant to Huobi, acquired a controlling share in Huobi through a Hong Kong-based asset management company for nearly $1 billion in November of the previous year. However, Sun has not confirmed any ownership stake in the past.
