HomeCryptoBitcoin Cash and the transparency report of HonestCoin

Bitcoin Cash and the transparency report of HonestCoin

The Cryptophyl exchange team has performed the due diligence on the HonestCoin (USDH) project and published a report on its transparency. 

USDH is a stablecoin based on the Bitcoin Cash (BCH) blockchain, compliant with regulations and pegged 1:1 to the value of the US dollar. The objective of the project is to enable the use of this stablecoin for payments and remittances worldwide, in a safe, efficient and low-cost manner.

Cryptophyl is an exchange entirely dedicated to the technology of Bitcoin Cash and the SLP token projects. It performs analysis and due diligence of the projects before listing the tokens. 

According to the analysis, HonestNode, the company behind HonestCoin, would position itself as a commercially strong stablecoin issuer.

Cryptophyl’s due diligence process was carried out in three steps:

  1. Gathering information from the founding team and the blockchain
  2. Verification of the information collected
  3. The actual analysis that leads to the final judgment to decide whether or not to list the token. 

During the first phase, the company gathered information about HonestNode, in particular, information about the legal structure of the company and its team, KYC documentation on people with significant roles in the company, copies of contracts concerning the main business relationships and the analysis of the blockchain. 

The company that issues and manages USDH is HonestNode Limited, which has its registered office in the Cayman Islands but has its operating headquarters in Beijing, China. 

The director and CEO is Shi Jian, who also holds 100% of the company’s ownership. 

Shi Jian and his team have raised venture capital funds and entered into several equity agreements with the same team, co-founders and initial investors. 

The company also obtained a FinCen registration in the USA. 

The company’s main business relationships are with Prime Trust LLC, Cohen and Co and Koi Compliance. 

Prime Trust is the custodian of the US dollar reserve that supports the stablecoin. 

Cohen and Co is responsible for corporate accounting, while Koi Compliance provides Know Your Customer (KYC) and Anti Money Laundering (AML) solutions. 

Prime Trust is a financial institution that provides BSA-compliant financial infrastructure solutions governed by the law of the state of Nevada. 

Cohen and Co will provide monthly audits to verify that the number of USDH tokens issued on the Bitcoin Cash blockchain is equal to the number of USD held by Prime Trust as a reserve. The first audit will be conducted by the end of October. 

Cryptophyl also asked HonestNode for more details about Prime Trust, and the company’s Chief Trust Officer, Scott Purcell, responded by providing these details:

  • Prime Trust is the trustee of assets for USDH
  • Prime Trust keeps 100% of cash FDIC-insured
  • Prime Trust holds the account exclusively for the benefit of token holders.

The conclusion of the exchange was that the HonestCoin team demonstrated that they meet the requirements to allow USDH to be listed on Cryptophyl. 


Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".