American lenders have banded together to prepare a stablecoin offering, in a bid to address issues over the backing of nonbank-issued equivalents.
NYCB is up 0.30%, USDT up 0.01%, and USD down 0.03%.
Dubbed as the USDF, the stablecoin seeks to take on issues on consumer protection and regulations of nonbank issued stablecoins. It will be a bank-minted competitor to USDT and USDC.
Among the founder members of the consortium are New York Community Bank, FirstBank, and the Sterling National Bank, with the group open to more financial institutions which wish to join.
The stablecoin will be under the Provenance blockchain and redeemable 1:1 for cash in any of the members of the group, which believes the token will be eventually be used for applications such as capital call financing.
Market players have earlier raised concerns on the reserves behind several stablecoins, such as Tether’s USDT.