Many US banks have set up an organization to create a stable USDF

Many US banks have announced that they will be launching joint ventures. On Wednesday the 12th, these financial companies issued a press release announcing the formation of the USDF Consortium Cons (Consortium) headed by the president of the Federal Insurance Corporation (FDIC). This organization is designed to establish a partnership of banks to support the adoption and integration of USDF stability coins.

Members of the company include New York Community Bank (NYCB), NBH Bank, FirstBank, Sterling National Bank, and Synovus Bank. Blockchain lending startup Figure Technologies and blockchain venture capital fund JAMFINTOP are also founding members.

The USDF was specially announced by US banks and will be reimbursed in cash by bank-affiliated associations at a 1:1 ratio, media reported. USDF's mission is to provide alternative means for non-bank financial institutions to address consumer protection and management issues and to provide safer options for debt consolidation.

Run on Provenance's public blockchain

According to "American Banker", the USDF operates on the public channel Provenance formed by the figure. In addition to peer-to-peer and B2B remittances, other USDF funding includes capital requests and payments and financial resources.

Picture General Secretary Ashley Harris said in an interview that the USDF differs from a stable market and feels like a symbol of accountability for the blockchain. The difference between USDF and fixed income currencies such as USDC and USDT is that USDF only works in the Provenance ecosystem.

“Today, smart contracts have been created to only allow exchanges of consumer wallets of bank members. All USDF are guaranteed by the bank and can be redeemed one-to-one to the bank. is safer."

The bank enters the stable market

Bea Ordonez, CFO of Sterling National Bank, which owns $ 30 billion in assets and is a member of the board of directors, said Bea Ordonez, USDF, Provenance blockchain and how USDF's stable currency offers companies financial a way forward. of the earth. money transfer.

Ordonez believes payment methods are still inefficient, slow and expensive. They don't offer the modern, real-time payment and KYC that banks want to offer their customers.

“What we are seeing at the macro level globally is that more and more payments have moved through the supply chain. From our perspective, banks and other financial intermediaries need to know “We think. The ability to move money in real time 24x7x365 in a cheap, profitable and consistent way will make our job easier."

Ordonez also found that more and more assets are being tokenized and traded around the world. This includes loans, personal security and valuables, from art to rare sneakers. “When that happens, there will be more need to make these businesses more profitable and reduce friction,” he said. Transferring money digitally should find a fast, efficient, inexpensive way and go the way.

Last year the statement was stable

It should also be noted that the rise in the stability of the USDF coin and the impact on services affected by the November announcement by the US Treasury-led Financial Services Commission that stablecoins should be backed by currencies trustees. currency, and they can be redeemed as needed and should be provided by the insurance company.

According to Bloomberg, Picture discussed with other U.S. companies and regulators how to secure stable investment to form a USDF subsidiary shortly after the announcement. Ashley Harris, general counsel for Figure, said in a statement at the time that the panel's approach was consistent with the president's task force recommendations that stability coins should be used and can be obtained from all depots insured.