U.S. Banks Form Group to Offer USDF Stablecoin

A radical of U.S. banks plans to connection its ain stablecoin, called USDF, successful a determination to tackle concerns astir the reserves down non-bank issued equivalents.

• Comprising institutions backed by the Federal Deposit Insurance Corporation (FDIC), 1 of the industry's cardinal regulators, the radical said the coin volition "addresses the user extortion and regulatory concerns of non-bank issued stablecoins," according to an announcement Wednesday.

• Founding members of the USDF Consortium see New York Community Bank, FirstBank and Sterling National Bank. The consortium wants much fiscal institutions to join.

• Earlier this period CoinDesk joined a tribunal case seeking entree to documents received by the New York Attorney General's bureau (NYAG) from Tether.

• USDF volition beryllium a bank-minted alternate to USDT and Circle's USD Coin, which relationship for the lion's stock of the $170 cardinal stablecoin market. USDT has a marketplace headdress of $79 cardinal and a 24-hour trading measurement of $56.5 billion, according to CoinGecko. USDC has a marketplace headdress of $44.5 cardinal with a trading measurement of conscionable nether $3 billion.

• USDF volition run connected the Provenance blockchain and volition beryllium redeemable 1:1 for currency from immoderate of the group's members. The consortium sees the stablecoin being utilized for applications specified arsenic superior telephone financing and proviso concatenation finance.

• News of the consortium's plans emerged successful November past year erstwhile Figure Technologies met with U.S. regulators to sermon issuing specified a stablecoin.