A consortium of four licensed banks in the United States has formed to launch a bank-minted stabilitycoin called USDF. According to them, this will challenge stablecoins which are mostly not bank issued.
The USDF Consortium is the name of its founding members, which include New York Community Bank (NYCB), NBH Bank Bank, FirstBank and Synovus Bank. Figure Technologies and JAM Fintop will also help promote and facilitate the adoption of the stablecoin.
Wednesday’s announcement also highlighted the fact that the consortium will increase the number of its FDIC insured member banks throughout the year.
Mike Cagney, Figure’s CEO, stated that USDF offers endless possibilities in the expanding world DeFi transactions. The ease and speed of using USDF on-chain for securities transactions was proven this fall by NYCB’s minting USDF to settle securities trades executed through Figure’s other trading systems.
