2 years ago
Three much banks person joined a consortium of fiscal institutions readying to connection a caller stablecoin.
Amerant Bank, ConnectOne Bank and Primis Bank person joined founding members New York Community Bank, Synovus Bank, NBH Bank, First Bank and Webster Bank successful the USDF Consortium, the radical said successful a statement Wednesday. Investment slope Piper Sandler volition connection guidance done the process arsenic the consortium grows.
The USDF Consortium formed successful January to tackle concerns implicit fiat-pegged cryptocurrencies issued by non-bank entities. Stablecoins person swelled into a roughly $180 billion portion of the $1.8 trillion crypto economy, with Tether’s USDT arsenic the apical dog.
“The summation successful rank is simply a testament to the Consortium’s quality to supply in-depth guidance and link banks with turn-key exertion solutions arsenic good arsenic the transformative relation that blockchain outgo rails tin play successful fiscal services,” Ashley Harris, seat of the USDF Consortium, said successful a statement.
The USDF token is minted exclusively by U.S. banks and represents a deposit astatine a USDF Consortium bank. USDF has lone been minted connected a test-case ground to date.
Banks insured by the Federal Deposit Insurance Corporation (FDIC) uniting to enactment retired a stablecoin whitethorn look to code lingering worries astir the dependable backing of large stablecoins. However, the details – including whether the FDIC tin insure the stablecoin-related deposits – remain to beryllium fleshed out.
An FDIC spokesperson told CoinDesk successful January it was excessively soon to find whether oregon not the FDIC could insure stablecoins.
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Michael Bellusci is CoinDesk's crypto payments reporter.
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