Sterling National Bank, the wholly-owned operating bank subsidiary of Sterling Bancorp announced its participation in the USDF Consortium, an association of FDIC-insured financial institutions, whose objective is to advance the adoption and interoperability of a bank-minted stablecoin, USDFTM. USDF will be established on the Provenance Network, a public blockchain that supports real-time payment capabilities and will facilitate faster, cheaper, more secure money movement. USDF seeks to address many of the regulatory concerns raised related to non-bank minted stablecoins.
The USDF Consortium has been formed to build a network of banks to facilitate the compliant transfer of value on the blockchain, removing friction in the financial system and unlocking the financial opportunities that blockchain technology can provide to users. The Consortium is doing the foundational work to allow banks to leverage blockchain technology to drive responsible innovation and growth.
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“Our membership in the Consortium will enable us to integrate real-time payments into our operating model, allowing us to leverage the benefits of blockchain technology to streamline multi-party decisioning processes and provide certainty of settlement. We are exploring specific segment-focused use cases that can drive differentiation and growth in our commercially focused business, including potential applications to commercial lending and loan syndications,” said Bea Ordonez, Chief Financial Officer of Sterling National Bank.
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“Money transfers have historically been slow, expensive and complicated. We believe that we can differentiate our Banking-as-a-Service offerings by introducing capabilities such as real-time payments and smart contracts to our partners, allowing them to deliver a more efficient, digitally native experience to their clients.” said Matt Smith, Segment Executive Direct Bank and Banking-as-Service at Sterling National Bank.
“Blockchain opens up boundless possibilities and allows the Bank to develop innovative solutions for our customers.” said Derek Green, Chief Data Officer of Sterling National Bank. “At a foundational level, blockchain technology provides us the ability to seamlessly move information across a network and we expect that this will drive operational efficiencies both internally and for our customers.”
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