US banks have formed a group to issue their own stablecoin

A group of US banks are planning to offer their own stablecoin called USDF.

According to the statement, the stablecoin “will address consumer protection and regulation of non-bank stablecoins.”

The group itself is made up of institutions backed by one of the key industry regulators, the Federal Deposit Insurance Corporation (FDIC).

The USDF creation team includes New York Community Bank, FirstBank, and Sterling National Bank.

USDF will become a banking alternative to USDT and USD Coin from Circle. The coin will operate on the Provenance blockchain and backed by the dollar reserves of the participating banks.