Crypto exchange Huobi has partnered with Chinese blockchain company Nervos to develop a new public blockchain for decentralized financial (DeFi) services, according to a press release on July 1.
Together, they will create “FinanceChain,” which will enable commercial companies and exchanges to use their own blockchains, tokenize assets and give DeFi services. FinanceChain will also help in receiving of lending co-operation, stablecoins, security token offerings (STOs) and decentralized exchanges (DEXs), as well as other financial services.
Reflecting on the recently established partnership, Livio Weng, chief executive of Huobi Global and vice president of Huobi Group, said
We believe this project has enormous potential to do for established and emerging financial products and services what cryptocurrency is doing for the world of money.
FinanceChain is anticipated to open source in Q3 2019, with testnet launch programmed in Q1 of 2020 and mainnet launch in Q2 of 2020, per the report. It will also encourage decentralized identifier (DID) and execute Know Your Customer (KYC) mechanisms to satisfy Anti-Money Laundering (AML) obligations to assure administrative compliance, Huobi said, adding that regulators will also be capable to connect with the network as validators.
Kevin Wang, co-founder of Nervos said
More and more assets are being tokenized and moved to the digital world, including both native cryptocurrencies and traditional physical assets which is backed by notable investors, including China Merchant Bank, Polychain Capital, and Sequoia China.
Nervos Network is a gathering of customs and public blockchain environment. In the month of July 2018, Nervos accumulated $28 million from significant capital companies such as Polychain Capital to expand its business blockchain solutions.
The decision matches a similar expansion at the world’s largest cryptocurrency exchange, Binance. The exchange lately started its own public blockchain network named Binance Chain, intending to promote high-speed token issuance and easy asset transfer.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
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