Banks to Mint Stablecoins
Stablecoin is created to address investors' concerns about the high volatility of native cryptos, such as Bitcoin and alternative coins.
Its growing popularity among retail investors, who are often attracted by the high returns, eventually drew regulators' attention.
Last November, a task force of US financial regulators called on Congress to require stablecoin issuers to become banks, so consumer interest can be protected.
Yesterday, a group of 5 US community banks (with assets ranked around No. 50-100) announced that they will begin to mint their own stablecoins called USDF.
This shows the convergence of crypto exchanges and banks, in the quickly evolving digital currency space.
The newly-formed group is calling on other banks to join, as the new payment scheme needs more participants and more use cases beyond the native crypto trade.