As 2020 draws to a close, the cryptocurrency market has demonstrated remarkable resilience, outperforming many traditional financial sectors with a "V-shaped recovery." Amid Bitcoin's historic surge past $20,000 and a crypto-friendly SEC chair appointment, Huobi Tech Holdings Limited announced a landmark achievement: its subsidiary Huobi Trust Company secured a Nevada Trust License, enabling regulated crypto custody and compliance services in the U.S. from 2021 onward.
1. Why This License Matters for Huobi
The Nevada Trust License positions Huobi to:
- Offer regulated custodial services for digital assets.
- Expand into the U.S. financial market with compliant products.
- Compete with giants like Grayscale by providing institutional-grade crypto trusts.
Key Developments:
- Strategic hires include Simon Collier (ex-HSBC wealth solutions lead) as Trust Head and Aja Heise (former Prime Trust CCO) to oversee compliance.
- Plans to relaunch U.S. operations in H1 2021, leveraging the license to bypass previous regulatory hurdles.
👉 Discover how Huobi's compliance strategy sets it apart
2. The U.S. Crypto Exchange Landscape: Opportunities and Challenges
Current Market Leaders:
- Coinbase: Dominates with NYDFS licensing but limited global liquidity.
- Gemini: Strong regulatory footing but narrower asset selection.
Huobi’s Edge:
- Global liquidity and diverse trading pairs outperform U.S.-centric exchanges.
- Compliance contrasts with rivals like Binance, which exited the U.S. due to regulatory pressures.
| Comparison | Huobi | Coinbase |
|---|---|---|
| Licensing | Nevada Trust License | NYDFS BitLicense |
| Global Reach | 130+ countries | Primarily U.S. |
| Institutional Services | Huobi Brokerage, Trust options | Custody solutions |
3. A Milestone for the Crypto Industry
Huobi’s license signals broader institutional confidence:
- 92% of institutional investors prefer regulated exchanges for asset safety.
- Global compliance footprint: Licenses in Japan (via BitTrade), Thailand, Gibraltar, and Hong Kong (4/9号牌照).
Industry Impact:
- Sets a precedent for exchanges to prioritize long-term compliance over short-term gains.
- Paves the way for smaller exchanges to follow suit in regulated markets.
4. The Road Ahead: National Trust Charters and Beyond
The OCC’s recent endorsement of national trust bank licenses for crypto firms opens new doors:
- Huobi may upgrade its state license to a federal charter, streamlining cross-state operations.
- Potential to innovate with regulated crypto-financial hybrids, akin to traditional trusts.
"Compliance and security are Huobi’s cornerstone achievements over 7 years." — Du Jun, Co-founder.
FAQs
Q: What services can Huobi now offer in the U.S.?
A: Crypto custody, trust management, and regulated trading services under Nevada law.
Q: How does this license compare to Coinbase’s BitLicense?
A: While BitLicense is state-specific (NY), Huobi’s trust license allows broader fiduciary services nationwide.
Q: Will Huobi support fiat-crypto trading in the U.S.?
A: Not immediately, but the license enables future expansions into compliant fiat gateways.
Q: Why are institutional investors drawn to licensed exchanges?
A: Regulatory oversight reduces counterparty risk, aligning with institutional due diligence standards.
👉 Explore Huobi’s global compliance initiatives
Conclusion
Huobi’s Nevada license marks a paradigm shift toward exchange legitimization. As regulators tighten scrutiny, early adopters of compliance—like Huobi—will lead the next wave of institutional crypto adoption. The future belongs to licensed, transparent platforms, and Huobi is already ahead of the curve.