US banks are jumping headfirst into the world of stablecoins as a group of US-backed financial institutions makes plans to mint a new stablecoin.
According to a press release, the “USDF Consortium” will mint a US-dollar pegged stablecoin (USDF) that’s redeemable on a 1:1 basis from any of the consortium’s members.
[adinserter block="1"]The USDF Consortium’s founding banks include New York Community Bank, NBH Bank, FirstBank, Sterling National Bank and Synovus Bank.
The fintech company Figure Technologies and the joint venture JAM FINTOP are also partners on the stablecoin project, which will launch on the Provenance Blockchain.
Explains Figure CEO Mike Cagney,
“USDF opens up endless possibilities for the expanding world of DeFi transactions.
The ease and immediacy of using USDF for on-chain transactions was demonstrated this fall when NYCB minted USDF used to settle securities trades executed on Figure’s alternative trading systems.
We are tremendously excited that NYCB expects to be minting USDF on demand and on a regular basis in the coming weeks.”
The USDF stablecoin will be programmed to prevent transfers to wallets without bank-compliant know your customer or anti-money laundering review processes, per the project’s website.
The USDF Consortium also claims their stablecoin will satisfy the recommendations laid out by the President’s Working Group Report on the sector.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Alberto Andrei Rosu/Sensvector
