Two USDF Consortium™ members completed a first of its kind transaction over the Provenance Blockchain. NBH Bank, a subsidiary of National Bank Holdings Corporation (NYSE: NBHC) minted USDF and sent it to a customer of New York Community Bank, the banking subsidiary of New York Community Bancorp, Inc. (NYSE:NYCB), as a test to demonstrate bank-to-bank interoperability on a public blockchain. NBH Bank’s minted USDF represented the capital contribution for its founding membership in the USDF Consortium, an association of FDIC-insured financial institutions with a mission to build a network of banks to further the adoption and interoperability of a bank-minted tokenized deposit (USDF™). USDF is minted exclusively by banks.
“We believe that this transaction not only demonstrates the bank interoperability of USDF, but also demonstrates the ability for banks to offer their clients new and safe payment applications with real time settlement at a low cost,” said Valerie Kramer, Chief Digital Officer at NBH Bank. “USDF facilitates the compliant transfer of US Dollar value on the blockchain, removing friction in the financial system and expanding digital access to financial opportunities.”
As previously announced, New York Community Bank and NBH Bank, along with First Bank, Sterling National Bank, Synovus Bank, Figure Technologies, Inc., and JAM FINTOP are the founding members of the newly launched USDF Consortium.
“This first-of-its-kind transaction is only the beginning as the Consortium will continue doing the foundational work to allow banks to leverage the breakthrough technology of blockchain for responsible innovation and growth,” said Ashley Harris, Chair of the USDF Consortium. “We expect our membership to increase rapidly through 2022 as member banks demonstrate that USDF is a valuable, compliant component of their digital asset strategy.”
The USDF Consortium is accepting new members as it looks to grow. Interested banks can visit www.usdfconsortium.com to learn more about the Consortium, USDF, membership requirements, and how to apply to become a member.
ABOUT USDF CONSORTIUM
The USDF Consortium™ is a membership-based association and is not an FDIC-insured bank. We are working to coordinate the efforts of banks in minting USDF in a regulatory compliant manner; build out the bank network; and ensure interoperability of USDF to realize the full potential of blockchain technology to better serve consumers. The USDF Consortium is making the market safer, cheaper, and more reliable for consumers who want to transact on blockchain by ensuring banks continue to play an important role in the financial ecosystem as blockchain adoption proliferates. We are committed to building the foundation and advancing responsible innovation that will allow banks to harness this technology. To learn more, and for a full list of the founding member companies, please visit the Consortium’s website at www.usdfconsortium.com.
ABOUT NBH BANK
NBH Bank, a wholly-owned subsidiary of National Bank Holdings Corporation, operates a network of 81 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. The bank’s core geographic footprint consists of Colorado, the greater Kansas City region, Texas, Utah and New Mexico. NBH Bank operates under the following brand names: Community Banks of Colorado and Community Banks Mortgage, a division of NBH Bank, in Colorado, Bank Midwest and Bank Midwest Mortgage in Kansas and Missouri, and Hillcrest Bank and Hillcrest Bank Mortgage in Texas, Utah and New Mexico. National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high-quality client service and committed to shareholder results. For more information visit: cobnks.com, bankmw.com, hillcrestbank.com or nbhbank.com. More information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.
ABOUT NEW YORK COMMUNITY BANCORP, INC.
Based in Hicksville, NY, New York Community Bancorp, Inc. is a leading producer of multi-family loans on non-luxury, rent-regulated apartment buildings in New York City, and the parent of New York Community Bank. At September 30, 2021, the Company reported assets of $57.9 billion, loans of $43.7 billion, deposits of $34.6 billion, and stockholders’ equity of $7.0 billion. Reflecting our growth through a series of acquisitions, the Company operates 236 branches through eight local divisions, each with a history of service and strength: Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank, and Atlantic Bank in New York; Garden State Community Bank in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Florida and Arizona.
On April 26, 2021, the Company announced that it entered into a definitive merger agreement to acquire Flagstar Bancorp, Inc. The transaction was approved by both sets of shareholders on August 4, 2021 and is expected to close during the fourth quarter, subject to the satisfaction of certain closing conditions and the receipt of all necessary regulatory approvals. Upon closing, the combined company will have $85 billion in total assets, operate nearly 400 traditional branches across nine states, and 86 retail lending offices across a 28 state footprint. It will also have significant scale in several lines of business, including residential lending, mortgage servicing, mortgage warehouse, and multi-family lending.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION:
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to any of the following concerning the USDF Consortium, Figure, JAM FINTOP, and/or any of the referenced Banks or respective bank holding companies (each a “Referenced Entity”): the Referenced Entity’s beliefs, goals, intentions, and expectations, including those regarding revenues, earnings, strategic relationships, acquisitions, USDF minting, and membership; the Referenced Entity’s estimates of future costs and benefits of the actions the Referenced Entity may take; and the Referenced Entity’s ability to achieve its financial and other strategic goals, or expected synergies and operating efficiencies in, or as a result of, the subject of the forward-looking statement within expected timeframes or at all. These forward-looking statements also include, without limitation, those relating to the terms, timing and closing of any pending or proposed material transaction or initiative undertaken by the Referenced Entity (each a “transaction”).
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