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Why do exchanges like Binance and Huobi want their own stablecoins?

by Celia Wan

September 12, 2019, 4:35PM EDT  ·  4 min read

Quick Take

  • Binance announced today that it will launch its own dollar-pegged stablecoin, BUSD, on Sept. 16, rivaling Huobi Global’s stablecoin HUSD
  • Binance and Huobi’s move into the stablecoin market elicits the question: why do cryptocurrency exchanges want their own stablecoins, when there are already so many and none of them can beat tether? 
  • While the long term goal may be to replace Tether, in the short run, these exchanges want to have direct control over the fiat funds on their platforms that tether represents 
  • If BUSD and HUSD can completely replace tether on Binance and Huobi, their volumes together could reach as high as $580 billion 

by Celia Wan

September 12, 2019, 4:35PM EDT  ·  4 min read

So far, 2019 has been an unsettling year for stablecoins. 

For one, OG stablecoin Tether was found lying about being fully backed by a dollar reserve. Then, amid tether’s legal turbulence, still more stablecoins were issued or announced. After all, what if tether falls? The successors will need to be groomed in time for the king’s overthrow.