USDF Stablecoin Consortium Adds 3 More Banks

Amerant Bank, ConnectOne Bank and Primis Bank will join the U.S.-based group pushing for blockchain-based payment rails.

AccessTimeIconMar 9, 2022 at 9:33 p.m. UTC
Updated May 11, 2023 at 7:11 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Amerant Bank, ConnectOne Bank and Primis Bank have joined a consortium of financial institutions that is planning to offer a new stablecoin.

The three banks are now part of the USDF Consortium, a group that includes founding members New York Community Bank, Synovus Bank, NBH Bank, First Bank and Webster Bank, the organization said in a statement Wednesday. Investment bank Piper Sandler will offer guidance through the process as the consortium grows.

  • BlackRock's Spot Bitcoin ETF Filing 'Will Get Approved,' Mark Yusko Predicts
    10:58
    BlackRock's Spot Bitcoin ETF Filing 'Will Get Approved,' Mark Yusko Predicts
  • UK and EU Push Ahead on Stablecoin Regulation; Hong Kong Approves Another Crypto Exchange
    26:05
    UK and EU Push Ahead on Stablecoin Regulation; Hong Kong Approves Another Crypto Exchange
  • Stablecoin Plans From UK Regulators Is the 'Next Stage' for Crypto Regulation: Legal Expert
    01:14
    Stablecoin Plans From UK Regulators Is the 'Next Stage' for Crypto Regulation: Legal Expert
  • UK Financial Watchdogs Reveal Stablecoin Regulation Proposals
    08:44
    UK Financial Watchdogs Reveal Stablecoin Regulation Proposals
  • The USDF Consortium was formed in January to tackle concerns over fiat-pegged cryptocurrencies issued by non-bank entities. Stablecoins have swelled into a roughly $180 billion slice of the $1.8 trillion crypto economy, with Tether’s USDT as the top dog.

    “The increase in membership is a testament to the consortium’s ability to provide in-depth guidance and connect banks with turn-key technology solutions as well as the transformative role that blockchain payment rails can play in financial services,” Ashley Harris, chairwoman of the USDF Consortium, said in the statement.

    The USDF token is minted exclusively by U.S. banks and represents a deposit at a USDF Consortium bank. USDF has been minted only on a test-case basis so far.

    Banks insured by the Federal Deposit Insurance Corp. (FDIC) uniting to put out a stablecoin may seem to address lingering worries about the sound backing of major stablecoins. However, the details – including whether the FDIC can insure the stablecoin-related deposits – remain to be fleshed out.

    An FDIC spokesperson told CoinDesk in January it was too soon to determine whether the FDIC could insure stablecoins.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Author placeholder image

    Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about