Three additional banks have joined a group of financial organizations that aim to launch a new stablecoin.
The USDF Consortium announced Wednesday that Amerant Bank, ConnectOne Bank, and Primis Bank have joined founding members New York Community Bank, Synovus Bank, NBH Bank, First Bank, and Webster Bank.
Piper Sandler, an investment bank, will provide advice throughout the process as the consortium grows.
The USDF Consortium was created in January to address concerns about non-bank companies issuing fiat-pegged cryptocurrency.
Stablecoins now account for around $180 billion of the $1.8 trillion crypto ecosystem, with Tether’s USDT leading the pack.
“The increase in membership is a testament to the Consortium’s ability to provide in-depth guidance and connect banks with turn-key technology solutions, as well as the transformative role that blockchain payment rails can play in financial services,” said Ashley Harris, chair of the USDF Consortium.
The USDF token is only issued by banks in the United States and reflects a deposit at a USDF Consortium bank.
To date, USDF has only been minted on a trial basis.
The collaboration of banks insured by the Federal Deposit Insurance Corporation (FDIC) to create a stablecoin may appear to answer lingering concerns about the stability of major stablecoins.
However, the specifics, such as whether the FDIC may protect stablecoin-related deposits, have yet to be worked out.
In January, an FDIC spokeswoman stated that it was too early to evaluate whether or not the FDIC could insure stablecoins.