USDF is the stablecoin of a group of U.S. banks. USDF Consortium will issue the stablecoin. This will enable its members, financial and banking institutions to make USDF. The proposed stablecoin will be the first currency of its kind to be minted by FDIC-insured institutions and compliant with the recommendations on the use of stablecoins made by the president’s working group.
USDF Consortium Launches Stablecoin
USDF is the name of the USDF consortium. It’s a group made up banks and other financial institutions. According to a press release issued on January 12, the objective behind this release is to remove friction by addressing “the consumer protection and regulatory concerns of non-bank issued stablecoins and offer a more secure option for transacting on blockchain.”
USDF is the organization that authorizes these banks to mint stablecoin. This stablecoin can be exchanged 1:1 for cash at any of the bank members of the above consortium. Institutions such as Synovus Bank, NBH Bank Firstbank Sterling National Bank and New York Community Bank (NYCB) are the founding members. Jam Fintop and Figure Technologies are also founding members.
Beating Defi, Settlements and Payments
Stablecoins form a significant part of the current decentralized financial system. USDF is working with them to make this a reality. Click CEO Mike Cagney declared:
USDF provides endless options for expanding the world of deFi transactions.
Figure’s systems have already used USDF to settle securities transactions involving the New York Community Bank. Andrew Kaplan, NYCB’s chief digital and banking as a service officer, remarked about the importance of this launch for moving compliant funds using modern blockchain services. According to the executive, the goal is to do things in a “way that can scale, adheres to regulatory standards, and is acceptable to all users from large institutional investors to retail customers.”
This is one of the first attempts of a block of banks to propose an alternative solution to the stablecoins that are already on the market, taking into account the recommendations on the use of stablecoins by the president’s working group. Stablecoins are a sector that has seen significant growth and have now surpassed the $100 billion market capital. Tether issued USDT as a token, and it now controls almost half of this market.
Cagney says that in the next few weeks the New York Community Bank is going to mint the stablecoin upon demand.
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