Based on a recent report, blockchain services company and digital currency operator Huobi Group is creating a public blockchain which will be used mainly for cases within decentralised finance (DeFi).
Huobi Finance Chain
According to a statement issued by the firm, the initiative which is currently being referred to as Huobi Finance Chain is expected to help all banks, exchanges, and businesses with the release of their own DeFi services, tokenised assets, and blockchains.
The press release stated that:
“Among other applications, the project will have the potential to host lending services, debit services, stablecoins, security token offerings (STOs) and other means of asset issuance, decentralised exchanges (DEXs), real-world payment services, and more.”
Considering the technical aspect of the project, Huobi is working in collaboration with blockchain network Nervos which provides a base proof-of-work underneath a protocol layer whose goal is to support scaling and other solutions.
The initiative is going to be made open source for several assets and smart contracts, therefore, enabling third-party architects to create and distribute various ranges of DeFi services. The support is also expected to be multi- and side-chain architectures.
Also, Huobi Finance Chain which will be regulator friendly will support decentralised identifier (DID) and provide identity protocols like know-your-customer (KYC) which allow projects to operate in accordance with anti-money laundering rules. The firm will also allow regulators to contribute to the network as validators.
Founder and Chief Executive Officer at Huobi Group, Leon Li said that:
“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, decentralised 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.”