The HUSD stablecoin, which touts to be a “secure, reliable, and fiat-collateralized stablecoin, that combines the stability of the US dollar and the efficiency of blockchain technology,” issued by Stable Universal; has fallen to $0.92, an 8% drop from its planned $1 peg, according to data from CoinMarketCap.
It is trading as low as $0.89 against the USDC stablecoin on decentralized finance (Defi) protocol Curve Finance. The de-pegging occurred 16 days after crypto exchange FTX removed HUSD from its basket of support USD stablecoins.
A stablecoin is a cryptocurrency designed to hold its value against another asset. This can be in the form of algorithmic stablecoins or reserve-backed coins, of which HUSD is an example.
The stablecoin sector has been under intense regulatory scrutiny this year following the implosion of algorithmic stablecoin TerraUSD (UST); which saw $18.71 billion evaporate alongside the collapse of Terra’s LUNA token.
HUSD is as an ERC-20 token on the Ethereum blockchain and is at a 1:1 ratio by US dollars in US bank accounts. The HUSD token is in reserve by the Paxos Trust Company.