Two USDF Consortium members completed a first of its kind transaction over the Provenance Blockchain. NBH Bank, a subsidiary of National Bank Holdings Corporation (NYSE: NBHC) minted USDF and sent it to a customer of New York Community Bank, the banking subsidiary of New York Community Bancorp, Inc. (NYSE:NYCB), as a test to demonstrate bank-to-bank interoperability on a public blockchain. NBH Bank’s minted USDF represented the capital contribution for its founding membership in the USDF Consortium, an association of FDIC-insured financial institutions with a mission to build a network of banks to further the adoption and interoperability of a bank-minted stablecoin (USDF). USDF is minted exclusively by banks.
“We believe that this transaction not only demonstrates the bank interoperability of USDF, but also demonstrates the ability for banks to offer their clients new and safe payment applications with real time settlement at a low cost,” said Valerie Kramer, Chief Digital Officer at NBH Bank. “USDF facilitates the compliant transfer of US Dollar value on the blockchain, removing friction in the financial system and expanding digital access to financial opportunities.”
As previously announced, New York Community Bank and NBH Bank, along with First Bank, Sterling National Bank, Synovus Bank, Figure Technologies, Inc., and JAM FINTOP are the founding members of the newly launched USDF Consortium.
“This first-of-its-kind transaction is only the beginning as the Consortium will continue doing the foundational work to allow banks to leverage the breakthrough technology of blockchain for responsible innovation and growth,” said Ashley Harris, Chair of the USDF Consortium. “We expect our membership to increase rapidly through 2022 as member banks demonstrate that USDF is a valuable, compliant component of their digital asset strategy.”
The USDF Consortium is accepting new members as it looks to grow. Interested banks can visit www.usdfconsortium.com to learn more about the Consortium, USDF, membership requirements, and how to apply to become a member.