Huobi, the biggest blockchain token and cryptocurrency exchange in China and the second-largest worldwide, recently announced it will be joining the Global Liquidity and Settlements System (GLASS) network.
The announcement comes via SharesPost, one of the leaders in providing liquidity solutions within the asset class of private growth. In addition to joining the network, Huobi has made an equity investment in SharesPost.
What joining GLASS means
Huobi now can settle secondary trades involving digital securities completed by U.S. investors while in full compliance with U.S. securities laws. Additionally, Huobi can pool the buy and sell orders of its 9 million customers with the other exchanges that use GLASS, doing so based on each trading pair.
The ability of GLASS to pool customers’ orders for various tokens with orders from other exchanges will be particularly useful for Huobi. This ensures sufficient liquidity for the expected wave of tokenized assets and security tokens. Within a month of the GLASS launch, member exchanges’ aggregated volume already was the biggest liquidity pool for token trading worldwide.
Get to know GLASS
GLASS is a project from SharesPost. This decentralized and global network offers cryptocurrency trading platforms, exchanges, and licensed broker-dealers. Ideally, GLASS will be the infrastructure for shared settlement and compliance within the blockchain community. All involved countries will have various licensed entities on the network, such as the Alternative Trading System from SharesPost in the United States.
When trading platforms on the network, such as Huobi, match offshore clients in digital securities trades, they can seamlessly submit this trade to the licensed entity within the network for the client’s home jurisdiction, so the settlement remains compliant. Other crypto trading platforms that support GLASS include Stellar and OKCoin.
What SharesPost has to say
SharesPost CEO and founder Greg Brogger expressed excitement concerning the addition of Huobi to the GLASS network. He said this shows that the network receives validation from a highly respected trading platform.
Brogger also said this partnership shows that the digital securities market is moving onto its next developmental stage. He and his team expect that this will “clear the cloud” left by the lack of a legitimate compliance solution on a global scale for crypto markets.
What Huobi Eco has to say
Wang Run, CEO of Huobi Eco, the strategic investment and corporate development portion of Huobi, is similarly optimistic. He explained that Huobi Eco is focusing on ecosystem development around the main exchange business. The goal is to enhance finance efficiency along with the population’s access to opportunities for wealth creation.
Like previous actions, this partnership supports a solution that lets Huobi operate within compliance requirements of all the countries it does business in. Run feels this is even more important now since the market is growing and more investors want to participate in crypto via a safe, regulated market.