Five American banks have merged into the USDF Consortium. The organization will issue and distribute the USDF stablecoin pegged to the US dollar.
As part of this initiative, banks are planning create a single network for the operation of the USDF stablecoin, which may well compete with the USDC and USDT stablecoins. The consortium includes New York Community Bank, NBH Bank, FirstBank, Sterling National Bank and Synovus Bank, but the organization is open to other banks as well.
One of the main tasks of the consortium at the moment is the approval of the project by the regulators. The press release emphasizes that during the development of the system, all the necessary measures were considered to protect consumers. It is planned that all banks of the consortium will be able to issue USDF tokens, as well as exchange stablecoins for cash.
The stablecoin will operate on the basis of the Provenance blockchain developed by Figure. Figure Technologies CEO Mike Cagney said:
“USDF offers endless opportunities for the growing DeFi industry. The simplicity and efficiency of using USDF for exchange was demonstrated back in the fall of last year, when NYCB issued the USDF stablecoin and used it to trade securities on the alternative Figure platform. We are very pleased that the release of stablecoin will become regular in the coming weeks. ”
Note that the project may well be crowned with success, because American regulators are gradually changing their attitude towards cryptocurrencies, especially stablecoins. Recently, Fed Chairman Jerome Powell said stablecoins could be used in conjunction with the government’s digital currency.