FTX exchange ready to offer $1M prize for banks to accept stablecoin

Stablecoins like USDT are under scrutiny in the United States, for certain lawmakers calling for greater regulatory oversight of the industry.

FTX exchange ready to offer $1M prize for banks to accept stablecoin

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

In a Tuesday Twitter post, FTX said it was exploring shaping relationships with banks in different regions to allow user to have "close moment and neat free deposits and withdrawals" through stablecoin. The exchange floated the idea of offering a $1 million prize for the first bank in each region to accept tokens but hinted it would be available to giving more.

The pitch to the exchange;s more than 350,000 Twitter followers came following FTX CEO Sam Bankman-Fried, or SBF, recommending additional regulatory clarity was required for the crypto space - Including stablecoins - to move ahead 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 issues while allowing stablecoins to thrive onshore."

FTX said that it focused an audience including however not restricted to U.S. banks in calling for an agreement on stablecoin, and would be open to speaking to credit unions. The exchange is incorporated in Antigua and Barbuda and headquartered in the Bahamas but additionally works FTX US for U.S users.

"We just acquired a bank and this is good idea," said oliver von Landsberg-Sadie, CEO of the London-based BCB Group, "No prize needed by us, you are already a customer of ours, and we all gain in the long run."

This year, many U.S regulators have turned their attention to stablecoins, with the President's Working Group on Financial Markets releasing a report in November proposing that issuers should be subject to "appropriate federal oversight" akin to that of banks, Neilie Liang. the Undersecretary of the Treasury for Domestic Finance, has also hinted at extra laws affecting the coins.

Related: FTX.US expands NFT marketplace to support Solana tokens