FTX, the cryptocurrency derivatives exchange, is calling on banks to reach out and discuss the possibility of accepting stablecoins in exchange for a $1 million reward.
It has been reported that FTX said that it was exploring forming relationships with banks in different regions to allow users to have “near-instant and near-free deposits and withdrawals” through stablecoins.
However, the exchange floated the idea of offering a $1 million prize for the first bank in each region to accept the tokens but hinted it would be open to giving more.
Likewise, the pitch to the exchange’s more than 350,000 Twitter followers came after FTX CEO Sam Bankman-Fried (SBF) suggested additional regulatory clarity was needed for the crypto space, including stablecoins, to move forward as an industry.
The report said that 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 allowing stablecoins to thrive onshore.”
FTX said it aimed for an audience including but not limited to US 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 Bahamas but also operates FTX US for US users.
Oliver von Landsberg-Sadie, the CEO of the London-based BCB Group, said:
"We just acquired a bank and this is a good idea. No prize required by us, you are already a client of ours, and we all gain in the long run."
This year, many US regulators have turned their attention to stablecoins, with The President’s Working Group on Financial Markets releasing a report in November suggesting that issuers should be subject to “appropriate federal oversight” akin to that of banks.
Thus, Nellie Liang, the Undersecretary of the Treasury for Domestic Finance, has also hinted at additional laws affecting the coins.