FTX to award $1 million to banks that add stablecoin support

The cryptocurrency derivatives exchange FTX will allocate $1 million to incentivise regional banks to consider and agree to add a service for depositing and withdrawing funds in stablecoins.

We’d love to form a relationship like this if it means FTX users would have near instant and near free deposits and withdrawals

— FTX — Built By Traders, For Traders (@FTX_Official) December 28, 2021

The initiative envisages establishing partnerships with FTX in the interest of its users, who would be able to deposit and withdraw funds instantly and almost free. The names of the stablecoins are not disclosed.

The cryptocurrency exchange does not rule out increasing the size of the reward. FTX is open to cooperation not only with American financial institutions.

The proposal followed the day after the thread from FTX chief Sam Bankman-Fried. In it, among other things, he touched on the topic of “stablecoins”, which “lacks a system of reporting and auditing to guarantee their collateral”. CEO FTX is convinced that this will solve “80% of all problems” in the sector.

In November, the President’s Working Group on Financial Markets in the United States published a report, which outlined the risks associated with stablecoins and recommended treating asset issuers as banks.

In December, the Office of the Comptroller of the Currency (OCC), part of the U.S. Treasury, promised in 2022 to present additional recommendations regarding the integration of cryptocurrencies into banks’ product lines.

Earlier, an interagency sprint began with the participation of ФРС, FDIC and OCC. The result of these efforts will be the delineation of responsibilities of each regulator with regard to the supervision of digital assets.

Earlier, the National Credit Union Administration allowed its members to enter into partnerships with third-party organisations to enable the buying, selling and storage of cryptocurrencies.

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