Bank / Credit Union

Banks launch USDF Consortium to mint, promote stablecoin

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January 21, 2022

Several banks have officially launched the USDF Consortium, an organization focused on building a network of banks to boost adoption and interoperability of a bank-minted stablecoin. With this stablecoin, banks will be able to take advantage of blockchain technology, according to a press release.

The founding members include New York Community Bank, NBH Bank, FirstBank, Sterling National Bank, Synovus Bank, Figure Technologies Inc. and Jam Fintop. Jam and Figure will facilitate and promote the adoption of the USDF stablecoin, which will be redeemable on a 1:1 basis for cash.

USDF will operate on the public Provenance Blockchain, which will allow customers to use it for a variety of tasks including capital call financing, invoice and supply chain finance.

"USDF opens up endless possibilities for the expanding world of DeFi transactions," Mike Cagney, CEO, Figure, said in the release. "The ease and immediacy of using USDF for on-chain transactions was demonstrated this fall when NYCB minted USDF used to settle securities trades executed on Figure's alternative trading systems. We are tremendously excited that NYCB expects to be minting USDF on demand and on a regular basis in the coming weeks."