Five American Banks Will Issue Their Own Stablecoin

Consortium to create USDF stablecoin as an alternative to non-bank stablecoins
Five US banks – New York Community Bank, NBH Bank, FirstBank, Sterling National Bank and Synovus Bank – partnered with Figure Technologies and JAM FINTOP to form a consortium to issue the new USDF stablecoin. 
Its issuers will be exclusively members of the consortium. The value of a stablecoin is pegged to the US dollar at a one-to-one ratio.







USDF should become an alternative to non-bank stablecoins. At the moment, the largest stablecoins by capitalization are USDT from Tether and USDC issued by Circle.





In the future, the consortium will continue to attract other banking organizations to cooperation.
Last November, the US President’s Financial Markets Working Group called for an early regulation of stablecoins. The members of the working group are concerned about possible insufficient provision of stablecoins and opaque reserves. 







Today, Treasury joined colleagues from the President’s Working Group (PWG) on Financial Markets, @FDICgov and @USOCC to issue a report on stablecoins.
Read more: https://t.co/7blQTYYJAU
— Treasury Department (@USTreasury) November 1, 2021





 
In this regard, the US authorities are planning to limit the list of companies that are entitled to issue their own stablecoins. The group proposes to allow only insured depository institutions to issue stablecoins.