Cryptocurrency firms are always looking for ways to expand their existing offerings. Huobi, a popular exchange and trading platform, is doing so by branching out into new industries. The launch of Huobi Cloud is an effort to advance blockchain development and adoption.
The Idea Behind Huobi Cloud
For Huobi, it has always been key to look beyond just being a cryptocurrency exchange. Despite having had some interesting expansion plans as of late, the company wants to do more than that. Introducing Huobi Cloud allows the Huobi Group to offer solutions for digital asset exchange partners. Any party can build its own secure and stable digital asset exchange through this new cloud infrastructure.
How Does it Work?
With competition heating up among digital asset service providers, Huobi Group will need to offer something unique to set its partners apart. The company has amassed a lot of experience over the past five years of running its own exchange. Extending this expertise to clients will help in areas such as security, compliance, and operational experience. Creating a safe and secure digital asset trading platform involves a lot more work than most people realize.
Huobi Cloud relies on the existing digital asset exchange platforms under Huobi Group’s control. Partners using Huobi Cloud can set up OTC exchanges and currency exchanges in a matter of hours. There is no real capability requirement in this regard, as most key functionalities will be shared with the Huobi Global platform. These include order integration, wallet management, asset management, and the clearing system.
Other benefits of embracing this new solution include shared liquidity and cross-platform market data visualization. Anyone looking to enter the world of cryptocurrency exchanges will need to have a willing partner to get them up and running. It seems Huobi Group is targeting that particular market with its new solution, although it remains to be seen how many companies will take the company up on its offer.
More Competition Is a Good Thing
Even though the cryptocurrency industry continues to grow, digital assets remain inaccessible for most people. This is primarily due to a lack of convenience and access to domestic trading platforms. Huobi Cloud could create a lot of new cryptocurrency gateways through its partners. More competition in the market will lead to innovation, cheaper services, and more convenience, without sacrificing security.