Hong Kong continues to introduce favorable policies for the cryptocurrency industry, attracting numerous exchanges to embrace these regulations and apply for relevant licenses to establish a presence in the market.
Since last year, Hong Kong has been rolling out a series of supportive measures for crypto businesses. The Financial Secretary, Paul Chan, recently announced the completion of legislative work for establishing a licensing system for virtual asset service providers, welcoming crypto companies from around the world. This wave of pro-crypto policies has led many exchanges to align their strategies with Hong Kong's regulatory framework.
While major players like Binance and OKX are actively participating, the moves of older exchanges like Huobi, which previously suffered setbacks due to exiting the mainland Chinese market, are particularly noteworthy.
According to an official announcement, Huobi began accepting deposits for TCNH (TrueCNH, TRC-20) on February 20 at 20:00 UTC, listed the TCNH/USDT trading pair on February 21 at the same time, and enabled withdrawals on February 22. Huobi became the first exchange to list TCNH.
TCNH is an offshore stablecoin pegged to the Chinese Yuan (CNH), and Hong Kong is one of the major hubs for offshore yuan circulation. Against the backdrop of Hong Kong's growing prominence in crypto, Huobi's move signals its strategic focus on expanding its business in the region. Justin Sun, in an interview with Bloomberg, explicitly referred to Hong Kong as "one of the testing grounds for cryptocurrency development" and emphasized Huobi's plans to broaden its operations there.
Additionally, upon reviewing the Huobi app, a "Hong Kong Section" has been added to the spot trading area, with HT, the exchange's native token, prominently featured. Connecting these dots, it sparks new speculation about HT's potential.
HT's Internal and External Empowerment: Building a Web3 Ecosystem
Huobi's strategy to bolster HT's value through these developments appears to be part of a longer-term plan. Following its brand upgrade last year, Huobi has been actively working on enhancing HT's utility, both internally and externally, to rapidly build a robust ecosystem around the token.
Previous reports highlight that activities like Prime, PrimePool, and PrimeVote are designed to "empower HT," increasing its practical rights and benefits for holders while strengthening community consensus. The voting-for-listing event (PrimeVote), for instance, allows HT holders to participate in selecting new projects for listing on the exchange. Over three sessions, this initiative has not only engaged the community but also provided tangible rewards for HT holders, positively impacting its market performance. At the end of the third session, HT saw a 19.20% increase within 24 hours, reaching a high of $6.4084.
Externally, Huobi has been equally vigorous in expanding HT's use cases. Collaborations with Tron and DMC Labs led to the introduction of the Dominican Republic's national token (DMC) and a decentralized identity (DID) system for its metaverse, with HT as the exclusive asset for participation. Furthermore, a partnership with Visa resulted in the launch of the Huobi Visa Debit Card, offering additional perks for HT holders.
These efforts outline a clear trajectory for Huobi and HT. Internally, by enhancing HT's utility, Huobi aims to solidify holder consensus and encourage long-term retention. Externally, the token is being integrated into various on-chain and off-chain scenarios, gradually aligning with Web3 concepts like digital identity.
With the implementation of Huobi's Hong Kong operations and the region's supportive stance on crypto and Web3, infrastructure development is expected to accelerate. HT could emerge as a bridge between the crypto market and the real world, facilitating Huobi's vision of a new Web3 gateway, potentially expanding globally from a Hong Kong base.
From a market perspective, TCNH's role as a stablecoin is to provide smoother and more sticky liquidity. Huobi has stated that listing TCNH aims to build an offshore yuan-denominated crypto trading market, enhance liquidity in Hong Kong's crypto space, and support the city's ambition to become a digital asset hub. Once Huobi's Hong Kong market gains traction, the offshore yuan stablecoin could see significant demand, given the region's status as a major hub for the currency, potentially leading to a new trading peak for the exchange.
This surge could reinvigorate HT, which already offers various privileges. Since December, users can utilize HT to pay for trading fees at a 25% discount. Holding HT also contributes to Prime membership tiers, unlocking benefits like further fee reductions, airdrop rewards, and exclusive high-yield financial products. Combined with the aforementioned activities, the value proposition for HT becomes compelling.
Recent market conditions add further momentum. As noted by a financial analyst, "If China's A-share market breaks through 3,900 points within six months, the government is likely to formalize registration-based IPOs, aligning with international standards. This could lead to the removal of daily price limits and the implementation of T+0 settlement. In a global context of tightening, China's stimulus measures may funnel substantial capital into crypto, presenting intriguing opportunities." Coupled with Hong Kong's crypto policies, significant funds could flow into the market via TCNH, benefiting exchanges and tokens like HT.
In the immediate term, the listing of TCNH has already impacted HT's market performance. According to CoinGecko data, HT experienced a notable uptrend, rising from $5.4 to a high of $6.75 following the announcement. At the time of writing, it had slightly corrected to $6.22, still up 18.3% in 24 hours.
As Hong Kong's crypto policies mature and Huobi's local operations expand, HT may continue its upward trajectory, turning speculation into reality and paving the way for Web3 innovation.
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Frequently Asked Questions
What is TCNH?
TCNH is an offshore stablecoin pegged to the Chinese Yuan (CNH), designed to facilitate crypto trading with yuan-based liquidity. It operates on the TRC-20 network, offering fast and low-cost transactions.
How does Huobi's Hong Kong focus affect HT?
Huobi's expansion in Hong Kong, including the listing of TCNH and new regulatory compliance, enhances HT's utility through increased demand, exclusive perks, and integration into Web3 ecosystems, potentially boosting its value.
What are the benefits of holding HT?
HT holders enjoy discounted trading fees, participation in voting events, access to exclusive financial products, and additional rewards through partnerships, making it a versatile asset within the Huobi ecosystem.
Why is Hong Kong significant for crypto?
Hong Kong's pro-crypto policies, including a licensing framework for virtual asset service providers, position it as a hub for innovation, attracting global companies and capital, which benefits tokens and projects operating there.
Can TCNH be used outside Huobi?
While initially listed on Huobi, TCNH's adoption may grow across other platforms, especially those involved in offshore yuan trading, but its current primary use is within Huobi's ecosystem.
How does TCNH improve market liquidity?
As a stablecoin, TCNH provides a reliable medium of exchange and store of value for traders, reducing volatility and enhancing liquidity in yuan-denominated crypto pairs, supporting broader market stability.