The “USDF Consortium” announced its launch and seeks to offer a stable dollar-linked currency that is backed by regulated regulation is when something is controlled by a specific set of rules. U.S. banks.
A group of regulated banks in the United States has formed an association to coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. and promote the adoption of their own stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. linked to the U.S. dollar, denominated USDForward (USDF).
The founding members of the consortium include the following banks New York Community Bank , FirstBank ySterling National Bankamong others. The partners are financial institutions regulated by the Federal Deposit Insurance Corporation (FDIC), one of the industry’s key regulatory bodies. Figure Technologies y JAM FINTOP are also founding members of the Consortium.
El USDF Consortium announced the association in a press release published on Wednesday. The stable currency USDF will be minted exclusively by U.S. banks. members of the group and promises to be an alternative to the stablecoins market an area or arena, online or offline, in which commercial dealings are conducted. that are not backed by banking institutions.
The USDF Consortium […] launched today with a mission to build a network a network refers to all nodes in the operation of a blockchain at any given moment in time. of banks to promote the adoption and interoperability blockchain interoperability, or cross-chain interoperability, is the ability to see and share information across multiple blockchains. of a stable, bank-minted currency currency is a medium of exchange that defines value. that will facilitate the blockchain-compatible transfer of value, eliminating friction in the financial system and unlocking [new] financial opportunities [for] users.
USDF: stablecoin minted by US banks.
According to the release, the stable coin will operate on the public blockchain Provenance y may be exchanged on a 1:1 ratio for cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. at Consortium member banks. . More FDIC-insured banks are expected to join the association in the coming months.
NYCB’s director of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. banking and banking as a service, Andrew Kaplan, pointed out that, as a stablecoin created and administered by regulated banks, “ USDF will enable broad use of a real-time blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. payment system that satisfies important principles of safety and soundness, anti-money laundering compliance and financial stability. “.
USDF addresses consumer protection and regulatory concerns of stable coins issued by non-banks and offers a more secure option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. for transacting on Blockchain.
Association members hope the initiative will also enable banks of all sizes in the U.S. to provide digital banking solutions to their customers. “ The Consortium was formed to meet the needs of customers demanding greater access to blockchain applications for payments and other transactions. “, reads the statement.
For its part, el CEO de Figure, Mike Cagney, noted that “ USDF opens up endless possibilities for the expanding world of [decentralised finance] transactions” (DeFi) .
A “regulated” alternative to USDT and USDC
USDF hopes to become a banking alternative forTether (USDT) y USDCoin (USDC), of Circle the two largest stablecoins of the market. Both have a combined market capitalization of over USD $120 billion, with USDT being the larger of the two in terms of market capitalization and volume.
The digital currency project had initially been unveiled in November. At that time, Bloomberg reported that members of the consortium were in discussions with key U.S. regulators. including officials at the Federal Reserve (Fed), about the possibility of issuing a stablecoin to the satisfaction of the control bodies.
The news came shortly after the Presidential Task Force on Financial Markets to present a proposal to regulate companies issuing stable currencies linked to fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currencies.
Stable coins play a key role in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market. In addition to providing investors with bridges a blockchain bridge allows the seamless transfer of data or tokens between two different blockchain projects. in and out, they are stable investment options and enjoy widespread use on DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. platforms. However, in recent times, the regulators have expressed their concerns on these assets due to the nature of the reserves backing them.
The case ofTether has been particularly contentious given the allegations by the lack of transparency with which the company has handled information about its dollar reserves for the currency.
- Regulation in Sight? U.S. Treasury Department held meetings to assess the stablecoins market
- VeChain Foundation announces it will launch a new stablecoin known as VeUSD
- Terra’s UST: the first decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. stablecoin with USD $10 billion capitalization
Article by Hannah Estefania Perez / DiarioBitcoin
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