Huobi announced that it will implement “Chainlink Proof of Reserve” to increase the security around its wrapped BTC token on the Ethereum mainnet, to ensure enhanced transparency.
DeFi users around the globe have tweeted in the favor of this update. They argued it will allow users enhanced end-to-end security regarding managing their reserves: both on-chain and off-chain.
With the help of this upgrade, Huobi will make it possible to verify BTC in reserve wallets against the total amount of HBTC. The aim is to reduce the risk of wrapping assets.
Huobi which supports the trade of over 300 cryptocurrencies on its exchange might require a longer verification procedure.
Enhanced security, user-friendly interface, and in-depth analysis of cryptocurrencies and price feeds are what sets Huobi exchange apart.
Chainlink Labs’ Head of Global Sales, Tomasz Wojewoda Said
Adding transparency is crucial for the DeFi ecosystem’s growth and investor protection. Tomasz further added that the venture was delighted with Huobi’s implementation of its system to improve the transparency of HBTC reserves.
Deployment of “Chainlink Proof of Reserve” was unavoidable because interoperability is essential in managing the risk associated with wrapped tokens.
The Future of This Newly Deployed Mechanism
For quite some time H-Tokens is planning to connect the DeFi ecosystem with the traditional banking system to increase liquidity. However, security was a major concern.
With this update, H-Tokens will drive the expansion of HBTC in the market, ultimately establishing HBTC as the most popular wrapped asset globally.
Huobi founded back in 2013, is now the global leader in the field of digital economy bringing more and more investors on board. The company will carry on its blockchain advancements.
As of now Huobi Group’s DeFi platform is operating in over 100 countries and being utilized by millions of customers for trading.
HBTC H-Token Might Do Wonders
Edward, the Head of Asset & Commercial Center added that wrapped assets especially HBTC-H is surely the most exciting crypto token to invest in because of their stable nature.
Wrapped crypto tokens are often considered stable cryptocurrencies because their prices are fixed to the value of other original assets.
For all the potential investors who are more inclined towards the security and protection of their assets class will now have higher security protocols.
Chainlink Proof of Reserve, now providing a higher level of integrity to HBTC-H will surely grab the attention of potential investors and might do wonders.
However, it was essential for the further expansion of the DeFi ecosystem that all the security risks associated with the wrapped crypto tokens be eliminated.
Given the fact that the crypto market and traditional markets are getting more and more intermingled, Huobi has taken a step in the right direction.