Five US banks, New York Community Bank, NBH Bank, FirstBank, Sterling National Bank and Synovus Bank, have joined forces 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 on a one-to-one basis.
USDF should become an alternative to non-bank stablecoins. At the moment, the largest stablecoins by market capitalization are USDT from Tether and USDC issued by Circle.
In the future, the consortium will continue to attract other banking organizations to cooperation.
The US President’s Financial Markets Working Group called in November for an early regulation of stablecoins. Working group members are concerned about possible undersupply of stablecoins and opaque reserves. 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.