Hubbard produced an assured performance and demonstrated his huge progression since joining the main tour in January, edging out Jackpot 6-4.
The tie pitted together the World Youth Champion and the reigning World Champion, but there was little to separate the pair on stage, with Hubbard keeping his cool at 4-4 to take the next two legs for victory.
"It's been one of my dreams to beat a World Champion so it's a big win for me and I'm very proud," said Hubbard.
"To play on the same stage as Adrian is a big achievement for me so to beat him is massive. He's a great gentleman and he congratulated me afterwards, which means a lot to come from the World Champion."
Hubbard now plays Peter Wright in Saturday's second round, with the Lowestoft thrower having overcome Prakash Jiwa 6-5 earlier on Friday.
The evening session began in sensational style as former world number one Colin Lloyd fired in a terrific nine dart finish, a feat that proved pivotal as he saw off Alex Roy 6-5 in a last leg decider.
Jaws pockets a £2,800 bonus should no other player match the achievement, but it was extra special for Lloyd as he hit a maximum, followed by a 171 and a 150 finish.
He now plays Paul Nicholson in a mouth-watering second round clash after the Australian World Cup star defeated Germany's Andree Welge 6-3.
"It was a great nine-darter for me because I hit 180, 171 and finished 150 with treble 20, treble 20 and double 15, and I don't think any of the darts clipped a wire," said Lloyd. "It was all sweet as a nut, and it helped me to get the result.
"I'm looking forward to playing Paul. He's played some good stuff over the last few years and it will be nice to get on the big stage - hopefully I can dig in a little bit and have a battle."
World number three James Wade joined Adrian Lewis in exiting the European Tour event at the first hurdle, as he went down 6-5 to Mensur Suljovic.
In a repeat of the 2010 World Championship clash, Suljovic frustrated Wade with his unorthodox approach, but outclassed The Machine, sealing victory on double five for a 14-darter and an end average of 102.
Phil Taylor overcame a scare against Dutch youngster Jerry Hendriks as he battled through to the second round with a 6-4 victory.
The Power got his first taste of a European Tour event after missing the inaugural tournament in Austria, and was pushed all the way by the PDC newcomer, with Hendriks threatening a comeback from 4-1 to 4-4, only for Taylor to close out victory as he watched his opponent miss tops for a 160 checkout in leg ten.
"It was very close and I'm relieved to be through," said Taylor. "Jerry played really well and when he was lining up tops for the 160 I thought we were going to have a decider, so I was thankful that he missed it!"
Taylor, who had earlier been invited alongside Lewis to the British Embassy to meet the Ambassador Simon McDonald, now plays another young prospect, Reece Robinson, in the second round of the £82,100 event on Saturday after the Hull ace knocked out former World Champion Richie Burnett 6-2 earlier on Friday.
Simon Whitlock romped to a 6-0 win over newcomer Daniel Starkey in their clash on Friday night and now plays Brendan Dolan, who was a 6-4 winner against Germany's Kevin Munch.
Bernd Roith was defeated 6-1 by Canada's John Part, who now plays Terry Jenkins after the Ledbury star was a 6-3 winner against Sweden's Magnus Caris.
Home hopes in the German Darts Championship will rest on Michael Rosenauer after he came from 3-2 down to knock out World Championship finalist Andy Hamilton 6-4 with an impressive showing.
Raymond van Barneveld was a comfortable 6-1 winner in his all-Dutch clash with Mareno Michels, and he will play Alan Tabern in round two, after the left-hander defeated Leon De Geus in a deciding leg.
Belgian ace Kim Huybrechts came from behind to defeat Steve Beaton 6-4 and set up a clash with Suljovic, while Ronnie Baxter also had to fight back before seeing off Andy Jenkins 6-5 to set up a clash with Vincent van der Voort.
Van der Voort pulled off the day's most unlikely comeback as he fought back from 5-1 down to defeat Scotland's Jim Walker in a decider.
Dean Winstanley enhanced his growing reputation as a PDC player with a fightback of his own to defeat Mark Walsh, who was ultimately punished for missing doubles to take victory in the final three legs of their thriller.
Winstanley will play Northern Ireland's left-hander Michael Mansell, who defeated Jamie Caven 6-4, while Dave Ladley knocked out UK Open semi-finalist Denis Ovens to set up a second round game with Kevin Painter.
Wayne Jones and Mervyn King set up a second round clash with their victories over Zdravko Antunovic and Peter Hudson respectively, while Dave Chisnall's 6-3 win over Gareth Cousins means he now plays Rosenauer.
Mark Webster overcame namesake Darren Webster 6-4 with a 100 average and now plays Colin Osborne, who was a 6-2 winner against Darren Johnson.
Wes Newton and Steve Brown will clash in the second round following their respective wins over Ireland's William O'Connor and Welshman Steve Evans, while Holland's Co Stompe came from 2-0 down to win 6-2 against youngster Sam Hill and now plays Michael Barnard.
World number four Gary Anderson forfeited his clash with Barnard midway through the second leg due to en eye problem which was affecting his focus, while Painter was also handed safe passage into the last 32 when youngster Keegan Brown withdrew on Thursday through illness.
Justin Pipe also posted a ton-plus average as he came from 2-0 down to win 6-4 against Michael van Gerwen, and now plays Andy Smith after the Studley thrower's narrow win over Mick Todd.
The second round is split across two sessions at the Tempodrom in Berlin on Saturday, before the last 16 play off for the £15,000 title on Sunday.