Florida-based community bank Amerant Bank is the latest financial institution to join the USDF Consortium, an association which provides a “base source” for banks’ digital asset and blockchain strategies, taking total membership to seven.
The member-based organization consists of a growing number of Federal Deposit Insurance Corporation (FDIC)-certified banks that wish to further develop blockchain-based payment rails.
The organization, which intends to offer a new stablecoin, was formed in January to tackle growing concern over ‘fiat-pegged’ (bank or government-backed) cryptocurrencies issued by non-bank organizations.
Amerant joins ConnectOne Bank and Primis Bank, which recently united with founding consortium members New York Community Bank, Synovus Bank, NBH Bank, First Bank and Webster Bank.
“We are continuously looking to innovate to ensure that we can provide the best service to our clients in the most convenient and modern way,” said vice chairman, president and CEO of Amerant Bank, Jerry Plush.
“We are pleased to be part of this consortium and to have a voice in the rapidly emerging world of blockchain and digital transactions.”
According to the USDF Consortium, its aim is to make the digital asset market “safer, more affordable and more reliable” for those looking to transact on blockchain, by ensuring banks continue to play a vital role in the financial ecosystem.
It intends to establish various services which member banks can offer their customers, including mobile banking, multi-party settlements, digital assets, and crypto lending.
Last month, the Financial Stability Board (FSB) published a report warning of the risks crypto-assets pose to financial markets.
It addressed “unbacked” crypto-assets in particular, as well as stablecoins, decentralized finance, and crypto-asset trading platforms.
The body said that stablecoins were susceptible to sudden and disruptive runs on reserves, often triggered by liquidity mismatch, as well as credit and operational risk.