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Consortium of US banks to offer ‘USDF’ stablecoin

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Announced Wednesday, several US banks have formed a consortium to develop and create a stablecoin linked to the fiat currency.

stablecoins, while useful in bridging fiat and cryptocurrencies, have a tainted reputation given that most stablecoin issuers provide unstable reserves, mostly backing the assets by ‘short-term corporate debts’ that may result in illiquidity. However, the consortium claims to address this problem.

The association said it will offer a "banking alternative" that can be redeemed 1:1 base for money from a bank member of the consortium. Stablecoin usdf will address "concerns about consumer protection and the regulation of securities issued by non-bank institutions" by targeting concerns about the reserves retained to support such tokens.

as per the announcement, the usdf consortium is formed by fdic-insured financial institutions, with founding members including the new york community bank, nbh bank, firstBank, British National Bank and Synovus Bank.

Founder members also include figure technologies, who founded the originating blockchain, and community bank group jam fintop that will facilitate the promotion and adoption of stablecoin usdf. additionally, the syndicate wants more fdic-insured banks to join the action.

figure ceo mike cagney said in the press release:

“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.”

In the meantime, the consortium has not yet disclosed the spare assets that support the stabilizers. Usdf will be launched on the provence blockchain and consortium activities, governance, membership and other aspects will be managed by the founding members and figure.

consortium of us banks to offer ‘usdf’ stablecoin appeared first on our bitcoin news.

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 1/14/2022

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