--- title: USDF Consortium Launches for Banks to Mint Stablecoins description: The consortium aims to grow its membership of FDIC-insured banks. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-896355786-May-12-2022-09-29-25-43-AM.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/usdf-consortium-launches-for-banks-to-mint-stablecoins#popup-newsletter) #### Want the latest news on securities markets -- FREE? 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Figure Technologies, Inc. and JAM FINTOP are also founding members and will facilitate and promote the adoption of USDF. The Consortium looks to significantly grow its membership of FDIC-insured banks through 2022 and beyond. USDF is a bank-minted alternative to non-bank-issued stablecoins. USDF will be minted exclusively by U.S. banks and will be redeemable on a 1:1 basis for cash from a Consortium member bank. USDF addresses the consumer protection and regulatory concerns of non-bank issued stablecoins and offers a more secure option for transacting on blockchain. USDF operates on the public Provenance Blockchain. The availability of USDF on a public blockchain means that, in addition to peer-to-peer and business-to-business money transfers, banks and their customers will be able to use USDF for a wide range of applications, including capital call financing as well as invoice and supply chain finance. "USDF opens up endless possibilities for the expanding world of DeFi transactions," said Figure CEO Mike Cagney. "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." The Consortium was formed to meet the needs of customers demanding more access to blockchain applications for payments and other transactions. "This will solve a critical need to move funds on blockchain, and it does so in a way that can scale, adheres to regulatory standards, and is acceptable to all users from large institutional investors to retail customers," said Andrew Kaplan, NYCB's Chief Digital and Banking as a Service Officer. "As a form of digital currency created and administered by regulated U.S. banks within the USDF Consortium, USDF will enable wide use of an on-chain, real time payments system that satisfies important principles of safety and soundness, compliance with anti-money laundering standards, and financial stability." "The USDF Consortium will allow banks of all sizes, and importantly, community banks, to provide the digital banking solutions that more and more of our clients expect," said Valerie Kramer, NBH Bank's Chief Digital Officer. "This aligns with our focus on building out a comprehensive digital financial ecosystem to provide greater access to credit, FDIC-insured depository and treasury management solutions, and integrated financial information, all while lowering transaction costs for small and medium-sized businesses." "Our membership in the Consortium will enable us to integrate real-time payments into our operating model, allowing us to leverage the benefits of blockchain technology to streamline multi-party decisioning processes and provide certainty of settlement. We are exploring specific segment-focused use cases that are relevant to our commercial model, including potential applications to commercial lending and loan syndications," said Bea Ordonez, Chief Financial Officer of Sterling National Bank. The USDF Consortium is doing the foundational work to allow banks to leverage the breakthrough technology of blockchain for responsible innovation and growth. The Consortium's founding bank members and Figure have a representative on the Board of Directors of the Consortium, which will manage the governance, activities, membership, and other aspects of the Consortium. Interested banks can visit [www.usdfconsortium.com](https://c212.net/c/link/?t=0&l=en&o=3409991-1&h=2023266718&u=http%3A%2F%2Fwww.usdfconsortium.com%2F&a=www.usdfconsortium.com) to learn more about the Consortium, USDF, and membership requirements, and to apply to become a member. Source: USDF Consortium [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/usdf-consortium-launches-for-banks-to-mint-stablecoins) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/usdf-consortium-launches-for-banks-to-mint-stablecoins) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/usdf-consortium-launches-for-banks-to-mint-stablecoins) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. 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