Yesterday, the Huobi exchange announced a partnership with Nervos, a company specialising in blockchain layers, for the development of a new public blockchain, Huobi Finance Chain, based on decentralised finance (DeFi).
The project, called the Huobi Finance Chain, will be regulator-friendly as well as high-performance and will allow companies, financial institutions and exchanges to use their blockchain, assets and services related to decentralised finance (DeFi). The project will also host services such as lending, debt, stablecoin, STO (Security Token Offering), DEX (Decentralised Exchange), fiat payment methods and others.
The project has the aim of making this kind of finance accessible to all, as stated by the CEO and founder of Huobi Group, Leon Li:
“The mission of Huobi Group is to make finance more efficient and make wealth accessible to all. This project is not only in line with Huobi’s overall strategy, but it also fulfils our core mission. From a strategic point of view, decentralized financial services are still in an early stage of development. The market demand is clear, however, and we believe this is a very definite business opportunity. During the past six years, Huobi has accumulated a lot of experience in the field of cryptocurrency trading, which has given us advantages in terms of understanding blockchains, accumulating key technology, and understanding asset transactions and financial markets. Although Huobi is currently a leader in the cryptocurrency industry, this industry is likely to undergo far-reaching changes in the future. Exploring public chain technologies and business models both keeps us innovative and serves as a strategic defence.”
This partnership will bring the infrastructure needed to transform the economy into a decentralised one, as explained by Nervos co-founder Kevin Wang:
“Our vision is to build the infrastructure for the future decentralized economy, so we’re thrilled to partner with Huobi to bring our technology to the financial sector. More and more assets are being tokenized and moved to the digital world, including both native cryptocurrencies and traditional physical assets. The financial industry is now at an inflection point, and together with Huobi, we’re well positioned to help it modernize its services for the decentralized future.”
In addition, Huobi will support DID (Decentralised Identifier) and the integration of identity protocols such as KYC (Know Your Customer) and AML (Anti-Money Laundering), which are essential for compliance with regulators.
The open source project is expected to start in the third quarter of 2019, while the testnet will probably arrive in the first quarter of next year, while in the second quarter of 2020 Huobi plans to launch the mainnet.