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The USDF Consortium, an association of FDIC-insured financial institutions, launched, with a mission to build a network of banks to further the adoption and interoperability of a bank-minted USDF stablecoin. USDF will be minted exclusively by U.S. banks and will be redeemable on a 1:1 basis for cash from a Consortium member bank. The Consortium's founding bank members include New York Community Bank, NBH Bank, FirstBank, Sterling National Bank, and Synovus Bank.

Members of the USDF Consortium met with senior officials of the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. about how to issue a regulatory-compliant stablecoin. The group's approach is purportedly consistent with the recommendations of the President's Working Group that stablecoin be issued only by insured depository institutions. The Consortium's USDForward (USDF) stablecoin would be issued, and backed, by dollar deposits at U.S. banks. The USDF Consortium is an association formed by Figure Technologies, JAM FINTOP, and a group of FDIC-insured banks. USDF is currently being used on the Provenance Blockchain in a limited scope to facilitate the real-time, bilateral settlement of transactions.

NBH Bank and New York Community Bank have conducted the first USDF transaction over the Provenance Blockchain. NBH Bank minted the newly introduced stablecoin and sent it to a customer of New York Community Bank as part of a test run. USDF is a stablecoin offered by the USDF Consortium, a group of FDIC-backed banks that announced its formation last week.

"Amerant Bank, ConnectOne Bank and Primis Bank have joined founding members New York Community Bank, Synovus Bank, NBH Bank, First Bank and Webster Bank in the USDF Consortium, the group said in a statement Wednesday. Investment bank Piper Sandler will offer guidance through the process as the consortium grows."

The U.S. Federal Deposit Insurance Corporation (FDIC) published minimally redacted letters sent to banks requesting information about their crypto activities and in most cases asking them to pause activities pending feedback. The FDIC was forced by a June 2024 court order filed by Coinbase (through its contractor History Associates), to release the letters after initially turning down the exchange's Freedom of Information Act (FOIA) request. According to Coinbase Chief Legal Officer Paul Grewal, "they show a coordinated effort to stop a wide variety of crypto activity". https://www.fdic.gov/foia/history-associates-inc-v-fdic-fdics-redacted-pause-letters-january-3-2025 https://www.ledgerinsights.com/fdic-publishes-crypto-pause-letters-including-usdf-consortium/