A group of US banks have announced plans to offer a stablecoin, dubbed USDF, to address the issues around the reserves backing of the assets.
USDF would be minted by the banks and run on the Provenance blockchain. It is redeemable at a 1:1 ratio in any of the consortium’s banks.
The group, which includes the New York Community Bank, Sterling National Bank, and FirstBank, seeks to bring more banks on board.
The institutions, regulated by the Federal Deposit and Insurance Corporation, want to shed some light on reserves supporting stablecoins like Tether’s USDT.
The USDT and USDC have the biggest share in the stablecoins market, which is currently valued at about $170 billion.
USDT market capitalization stands at $79 billion and $56 billion in daily trading volumes, while the USDC is valued at $44.5 billion and has a daily trading volume of $3 billion.