Sunday, January 23, 2022

US Banks Form Consortium for a Stablecoin Launch

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Four United States licensed banks have fashioned a consortium to launch a bank-minted stablecoin, known as USDF. This, in keeping with them, will problem the stablecoins which might be largely non-bank issued.

Dubbed USDF Consortium, its founding members are New York Community Bank (NYCB), NBH Bank, FirstBank, Sterling National Bank and Synovus Bank. Two extra corporations, Figure Technologies and JAM Fintop, will facilitate and promote the adoption of the upcoming stablecoin.

Additionally, Wednesday’s announcement highlighted that the consortium will develop the variety of its FDIC-insured member banks all year long.

“USDF opens up endless possibilities for the expanding world of DeFi transactions,” stated the CEO of Figure, Mike Cagney. “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.”

Use of a Public Blockchain

The stablecoin will probably be minted solely by the US banks and could be redeemed 1:1 for money from any of the Consortium member banks. The consortium is utilizing public Provenance Blockchain for issuing the stablecoin that may guarantee peer-to-peer and business-to-business cash transfers.

“This will solve a critical need to move funds on blockchain, and it does so in a way that can scale, adheres to regulatory standards and is acceptable to all users from large institutional investors to retail customers,” defined Andrew Kaplan, the Chief Digital and Banking as a Service Officer of NYCB.

“As a form of digital currency created and administered by regulated U.S. banks within the USDF Consortium, 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.”

Four United States licensed banks have fashioned a consortium to launch a bank-minted stablecoin, known as USDF. This, in keeping with them, will problem the stablecoins which might be largely non-bank issued.

Dubbed USDF Consortium, its founding members are New York Community Bank (NYCB), NBH Bank, FirstBank, Sterling National Bank and Synovus Bank. Two extra corporations, Figure Technologies and JAM Fintop, will facilitate and promote the adoption of the upcoming stablecoin.

Additionally, Wednesday’s announcement highlighted that the consortium will develop the variety of its FDIC-insured member banks all year long.

“USDF opens up endless possibilities for the expanding world of DeFi transactions,” stated the CEO of Figure, Mike Cagney. “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.”

Use of a Public Blockchain

The stablecoin will probably be minted solely by the US banks and could be redeemed 1:1 for money from any of the Consortium member banks. The consortium is utilizing public Provenance Blockchain for issuing the stablecoin that may guarantee peer-to-peer and business-to-business cash transfers.

“This will solve a critical need to move funds on blockchain, and it does so in a way that can scale, adheres to regulatory standards and is acceptable to all users from large institutional investors to retail customers,” defined Andrew Kaplan, the Chief Digital and Banking as a Service Officer of NYCB.

“As a form of digital currency created and administered by regulated U.S. banks within the USDF Consortium, 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.”



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