Bloomberg Law
Jan. 12, 2022, 12:00 PM

Community Banks Band Together to Issue Another Crypto Stablecoin

Olga Kharif
Olga Kharif
Bloomberg News

A handful of small U.S. banks are banding together to issue their own cryptocurrency stablecoin for use by consumer and businesses.

To be called USDF, the coin will run on a blockchain software network similar to the one behind Ethereum, and be redeemable one-to-one for cash at participating banks. The stablecoin, due to make its appearance this quarter, will be shepherded by the USDF Consortium, whose FDIC-insured member banks include New York Community Bank, NBH Bank, FirstBank, Sterling National Bank and Synovus Bank.

The consortium envisions the token being used by customers such as landlords to collect rent payments from ...