NYCB and Group of Banks Join to Launch USDF Stablecoin – Bitcoin News


A
group
of
U.S.-based
banks
is
launching
their
own
stablecoin,
USDF.
The
stablecoin
will
be
issued
by
the
USDF
Consortium,
which
will
allow
its
members
(financial
and
banking
institutions)
to
issue
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
to
Launch
Stablecoin

The
USDF
consortium,
a
membership-based
group
of
banks,
is
launching
the
first
bank-minted
stablecoin,
also
called
USDF.
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.”

The
USDF
consortium
is
the
entity
that
will
authorize
these
banks
to
mint
the
stablecoin,
which
will
be
redeemable
1:1
in
cash
from
any
of
the
banks
of
the
aforementioned
consortium.
The
founding
members
of
this
consortium
include
institutions
like
the
New
York
Community
Bank
(NYCB),
NBH
Bank,
Firstbank,
Sterling
National
Bank,
and
Synovus
Bank.
Figure
Technologies,
Inc.
and
Jam
Fintop
are
founding
members
as
well.

Targeting
Defi,
Payments,
and
Settlements

Stablecoins
are
a
big
part
of
what
decentralized
finance
is
about
at
this
moment,
and
the
USDF
consortium
is
targeting
this
area
with
the
development.
Figure
CEO

Mike
Cagney
stated:

USDF
opens
up
endless
possibilities
for
the
expanding
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
have
become
one
of
the
sectors
in
the
crypto
industry
with
notable
growth,

surpassing

the
$100
billion
market
cap.

USDT
,
the
token
issued
by
Tether,
dominates
almost

half

of
the
market
cap
in
this
category.

The
New
York
Community
Bank
will
be
minting
the
stablecoin
on-demand
in
the
next
weeks,
according
to
Cagney.

Tags
in
this
story



What
do
you
think
about
the
launch
of
USDF?
Tell
us
in
the
comments
section
below.

sergio@bitcoin.com'
Sergio
Goschenko

Sergio
is
a
cryptocurrency
journalist
based
in
Venezuela.
He
describes
himself
as
late
to
the
game,
entering
the
cryptosphere
when
the
price
rise
happened
during
December
2017.
Having
a
computer
engineering
background,
living
in
Venezuela,
and
being
impacted
by
the
cryptocurrency
boom
at
a
social
level,
he
offers
a
different
point
of
view
about
crypto
success
and
how
it
helps
the
unbanked
and
underserved.



Image
Credits
:
Shutterstock,
Pixabay,
Wiki
Commons


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