US Banks forms consortium to offer USDF Stablecoins
The launching committee includes New York Community Bank, FirstBank and Sterling National Bank.
The FDIC (Federal Deposit Insurance Corp) made the statement for USDF: " addresses the consumer protection and regulatory concerns of non bank issued stable coins."
The main aim of creating USDF is to tackle concerns about the reserves off non bank issued stablecoins.
Still, the agency has not made any formal announcement on USDF, they are just considering whether the stable coins reserves should qualify.
While stablecoins playing a vital role in crypto the concern is about the reserve bank's opaque nature.
It will operate on the provenance Blockchain and is redeemable 1:1 for cash. majorly being used for capital call financing and chain finance supply.
USDF is an alternative to the USDC and USD coins. USDC has a market cap of $44.5 billion with a trading volume of just under $3 billion.
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