The most controversial investment tools of recent times are undoubtedly cryptocurrencies. While some see these investment tools as “bubbles”, others describe various crypto money projects, especially Bitcoin, as “the future itself”. Now, we will talk about a development that reveals that the traditional finance industry has officially started to recognize the crypto money community.
Among cryptocurrencies, there is a type we call “stable coin”. These types of cryptocurrencies are directly indexed to the value of a physical currency. For example, Tether (USDT), USD Coin (USDC) or Binance USD (BUSD). These stablecoins are always traded around $1, and some investors can invest by buying stablecoins with a different physical currency. The leading banks of the USA, which came together on the subject, took action to create their own stable coins.
It will be an alternative to third-party stablecoins
US banks have formed the “USDF Consortium” for their stablecoins. Members of the consortium include financial institutions such as New York Community Bank, Sterling National Bank, Synovus Bank, FirstBank and NBH Bank, as well as companies such as Figure Technologies and JAM FINTOP. The members who set up the consortium will try to popularize the use of the stable coin and make people adopt this cryptocurrency.
The stable coin, which will be built on the Provenance Blockchain, will be used in many areas such as money transfer between individuals or businesses, and bill payment in addition to transactions on cryptocurrency exchanges. The stable coin, which will be produced only by the consortium member banks, will actually appear as the digital dollar of US banks.
This content is not investment advice.
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