Yesterday the USDF Consortium announced the addition of three more banks, Amerant Bank, ConnectOne Bank, and Primis Bank, that will use the blockchain network to tokenize bank deposits. The interoperable tokens enable 24/7 interbank transfers. While the stablecoin label has been adopted, these tokens are all issued by FDIC-insured banks.
USDF’s goal is to enable faster, lower cost transactions in a compliant fashion. In January, the consortium was founded by New York Community Bank (NYCB), NBH Bank, FirstBank, Sterling National Bank, and Synovus Bank. The co-founders and driving forces behind the consortium’s creation are community bank group JAM FINTOP and Figure Technologies, the founder of the Provenance blockchain, which is used by the network.
Following the addition of the new bank members, total assets managed by consortium member banks surpassed $200 billion.
“With the momentum that the Consortium has been experiencing and the meaningful interest we’ve received, we felt the time was right to broaden access,” said Ashley Harris, Chair of the USDF Consortium. “As new members join, the network’s value increases exponentially.”
Consortium members were required to have at least $1 billion in assets, but that’s not the case going forward. Two of the three new members have around $8 billion in assets, with Primis around $3.5 billion.
“We believe that employing blockchain within the regulatory perimeter allows us to build effective and secure solutions for our clients that meet the demands of their changing businesses,” said ConnectOne Bank’s Chairman & CEO, Frank Sorrentino III. “We look forward to working alongside industry-leading banks in unlocking the opportunities that blockchain can provide.”
It was also announced that Piper Sandler would help in recruiting new banks to the consortium.
There’s currently a race to attract US community banks to join blockchain payment networks. The other major competitor is TassatPay. Meanwhile, JP Morgan has its JPM Coin available for its account holders.