Houbi Cloud Wants 80 More Crypto Exchange Partners
Houbi Group, which is an exchange conglomerate based in Singapore, is known for its unique growth strategy when it comes to emerging markets. Basically, it partners with local entities and, later on, split all profits in a 50/50 method. With its attempt to increase revenue growth, it is looking to include 80 more crypto exchange platforms.
Partnership With HIZA
In an official report, the South African exchange called HIZA is expected to launch come May and join a cohort of at least 150 platforms. All of these platforms are reportedly under the Huobi Cloud umbrella, which has been recently confirmed by the senior business director of the conglomerate named David Chen.
According to Chen, they will be helping HIZA in getting its trade volume up. Even more so, the group is expected to expand its business when the market is proven to be more mature. Chen further revealed that right now, they are hoping to add around 80 like-minded entities.
As far as expansions are concerned, they are not necessarily new to Houbi. In fact, a good number of global exchange giants are starting to open their own independent subsidiaries in emerging markets, with Uganda being the most popular one right now. Some of them have also decided to invest in local exchanges. Take for example Bittrex, which recently invested in the South African exchange called VALR. Pretty much like Bittrex, Houbi also makes it possible for its partners to gain access to its global order books for prime liquidity.
Benefits Of Having Partnerships
There is a good catch when it comes to these partnerships. Basically, they give Houbi the opportunity to reduce all regulatory risks involved in working in under-developed markets. It is worth noting that these markets are known for having banking relationships that require local knowledge, not to mention all repercussions for unintentional missteps, which have still remained a mystery.
Chen further explained that when it comes to customer data, HIZA owns it. Houbi does not and will not even be interested. Otherwise, it would become the sole responsibility of the conglomerate.
Recent reports suggest that Huobi Group has managed to amass around $1.5 million in net profit since October last year thanks to Cloud partnerships, all of which have been successfully launched already. One of these partnerships is with SaBi, an exchange based in Nigeria. Interestingly, SaBi is known for facilitating approximately $100,000 worth of daily volume.