A consortium was formed by four US-based banks, with the main goal of launching a bank-minted stablecoin. The digital asset will be dubbed USDF, while the joint venture will be aptly titled the USDF Consortium. The banks’ main purpose is to challenge all non-bank issue stablecoins that have been issued.
The founding banks are as follows: NBH Bank, New York Community Bank (NYCB), Synovus Bank, FirstBank, and Sterling National Bank. To aid in the process, two additional companies will be aiding in the adoption of the stablecoin, namely Figure Technologies and JAM Fintop.
The coalition revealed that the USDF can be minted only by the aforementioned bank, and will be redeemable for cash on 1:1. The consortium will be using the public Provenance Blockchain to issue USDFs. This way, peer-to-peer transfers will be made possible.
Andrew Kaplan, Chief Digital and Banking as a Service Officer of NYCB, commented on the launch of the USDF as “As a form of digital currency… the USDF will enable wide use of an on-chain real-time payments system that satisfies important principles of safety and soundness, compliance with anti-money laundering standards and financial stability.”
He continues by saying that the introduction of the USDF will facilitate blockchain transactions in a safe and secure way that it is regulated, and also available to retail investors and to institutional ones.