Huobi Sets Sights on Institutional Investors

Equipped with a Gibraltar license, Huobi now wants to build a global cryptocurrency infrastructure for both institutional and retail customers.

Singapore-based digital assets trading group Huobi Global shared its ambitious expansion plans at a London conference on Friday, revealing that it aims to launch a regulated cryptocurrency exchange for institutional clients in 2019.

The Gibraltar-issued Distributed Ledger Technology (DLT) license obtained by the company at the end of November opens up new possibilities for handling digital assets on behalf of institutional customers.

"Our Gibraltar DLT license will allow us to open a fully-regulated exchange for our Global Institutional clients and retail clients alike, so this is a big win for Huobi and a very positive step forward for our global strategy," commented Lester Haoda Li, global head of Huobi’s institutional business.

The company believes that a well-designed regulatory regime will be beneficial to the industry, which is currently plagued by lack of confidence, rampant fraud, and poor customer protection. The Gibraltar DLT license will help to dispel the concerns of institutional investors, who have so far opted to steer clear of cryptocurrencies due to their unregulated nature.

Apart from that, Huobu plans to launch a set of regulated crypto products and provide fiat-to-crypto and crypto-to-fiat functionality that will serve as a more efficient and secure alternative to over-the-counter (OTC) services.

"To kick things off, we are launching with OTC services, but we have no intentions of stopping there. Our intention is to give our clients advantages and a comprehensive 'one stop shop' that was just not possible under the old paradigm," Li added.

Speaking before institutional investors and traders at the London conference, Huobi representatives described the group's investment criteria and explained the benefits of its stablecoin, HUSD. Huobi expects to bring its plans to fruition in the first half of 2019.

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