(Prnewswire) The New York Community Bank, Sterling National Bank, and First Bank are pioneering a stablecoin named USDF as concerns of nonbank-issued equivalents mount.
The consortium says the USDF coin will tackle the regulatory and investor protection concerns that have been raised on existing stablecoins.
USDF will be hosted on the Provenance blockchain and will be redeemed at 1:1 for cash from any of the members of the group.
The pioneer banks of the USDF stablecoin see more use cases for the coin, including supply chain finance and capital call financing.
The news comes when the existing stablecoins that include Tether’s USDT are marred with controversy, with questions raised over the opaque nature of the reserves backing them.
USDF is now expected to rival other stablecoins, including Circle’s USDC and Tether’s USDT, which comprise the majority of the $170 billion market.
USDT/USD is down -0.01%.
