BlocksInform
The USDF consortium is an association of financial institutions operated by the Federal Deposit Insurance Corporation (FDIC), which was launched on January 12.
the founding members of the consortium include new york community bank (nycb), nbh bank, firstbank, sterling national bank, and synovus bank, according to the announcement. A couple of fintech firms are also part of the group as they will facilitate the promotion and adoption of the new Stablecoin, he added.
Minted Stability Bank.
the usdf is a bank-minted stablecoin that aims to compete with or dominate over existing privately issued stablecoins such as tether (usdt) and circle’s usdc.
The new stablecoin will be issued exclusively by American banks and will be redeemable on a 1:1 basis in cash from member banks, it was added. The objective is to offer what the consortium has called "greater consumer protection" on unregulated stability.
Usdf will operate on the publicly sourced blockchain, a business proof of participation network launched in May 2021 by the provenance foundation, a company based in San Francisco, California.
figure technologies ceo, mike cagney, mentioned the potential use cases for decentralized finance, commenting, “usdf opens up endless possibilities for the expanding world of defi transactions,”
andrew kaplan, nycb’s chief digital and banking as a service officer, added:
“as a form of digital currency created and administered by regulated u.s. banks within the usdf consortium, usdf will enable wide use of an on-chain, real time payments system that satisfies important principles of safety and soundness, compliance with anti-money laundering standards, and financial stability.”
The announcement did not state how many stablecoins would be minted in the initial batch or when they would be made available to users who will need to comply with kyc/aml procedures before they can open a wallet.
late last year, a number of anti-crypto senators slammed stablecoins claiming that they pose a risk to the u.s. economy.
ecosystem outlook
There are currently $170 billion in outstanding stablecoins with a 24-hour trading volume of about $60 billion, according to CoinGecko. This represents about 7.8% of the total crypto market capitalization at the moment.
tether is still the dominant stablecoin with 78.5 billion usdt in circulation, according to the firm’s transparency report. This gives Tether a total market share of 46%, a figure that has gradually decreased despite the new regular token currencies. Electricity supply has increased by 223 percent since the same period last year.
The second biggest stablecoin with an outstanding supply of 44.1 billion is usdc which has a market share of 26%. Binance's bus is in third position with 14.1 billion tokens, or 8.3% of the stablecoin market. Terra USD (UST) has swapped DAI for fourth place with a current supply of 10.5 billion, according to CoinGecko.
