FTX exchange floats $1M prize for banks to accept stablecoins

Stablecoins like USDT are nether scrutiny in the Usa, with some lawmakers calling for greater regulatory oversight of the manufacture.

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FTX exchange floats $1M prize for banks to accept stablecoins

Cryptocurrency derivatives exchange FTX is calling on banks to reach out and hash out the possibility of accepting stablecoins in exchange for a $1 million reward.

In a Tuesday Twitter post, FTX said it was exploring forming relationships with banks in different regions to allow users to accept "virtually-instant and nigh-free deposits and withdrawals" through stablecoins. The exchange floated the thought of offering a $1 million prize for the commencement bank in each region to have the tokens just hinted it would exist open up to giving more.

How much would it cost to convince a depository financial institution to accept stablecoins?

If we offered a $1m prize for the showtime bank in each region that does it is that enough?

Practice you piece of work for a banking concern and want to talk over this?

— FTX - Congenital By Traders, For Traders (@FTX_Official) December 28, 2022

The pitch to the exchange's more than than 350,000 Twitter followers came following FTX CEO Sam Bankman-Fried, or SBF, suggesting boosted regulatory clarity was needed for the crypto infinite — including stablecoins — to move forwards as an industry. According to the CEO, creating a "reporting/transparency/auditing based framework" to confirm how the coins are backed would "solve 80% of the problems while assuasive stablecoins to thrive onshore."

FTX said information technology aimed for an audience including simply not limited to U.S. banks in calling for an agreement on stablecoins, and would be open to speaking to credit unions. The exchange is incorporated in Antigua and Barbuda and headquartered in The Commonwealth of the bahamas just also operates FTX US for U.S. users.

"We simply caused a bank and this is a good thought," said Oliver von Landsberg-Sadie, CEO of the London-based BCB Group. "No prize required past us, you are already a client of ours, and we all gain in the long run."

Related: Regulators are coming for stablecoins, merely what should they get-go with?

This year, many U.S. regulators take turned their attention to stablecoins, with The President'southward Working Grouping on Financial Markets releasing a written report in November suggesting that issuers should be subject to "appropriate federal oversight" alike to that of banks. Nellie Liang, the Undersecretary of the Treasury for Domestic Finance, has likewise hinted at additional laws affecting the coins.