FTX to Offer $1M Reward for Banks to Accept Stablecoins

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, with the aim to increase the adoption of stablecoins.

U.S. Regulators was reportedly to raise concern with stablecoin digital currency. The rapid growth of digital assets, including stablecoins-digital currencies pegged to national currencies like the U.S. dollar- was said to be "an important potential emerging vulnerability" by US regulators. However, digital exchanges are now stepping up to increase the use of stable digital coins.

FTX is incorporated in Antigua and Barbuda and headquartered in The Bahamas but also operates FTX US for U.S. users.

According to FTX, putting its efforts to establish partnerships can facilitate instant deposits and withdrawals. 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. FTX said it aimed for an audience including but not limited to U.S. banks in calling for an agreement on stablecoins, and would be open to speaking to credit unions. 

"How much would it cost to convince a bank to accept stablecoins? If we offered a $1m prize for the first bank in each region that does it, is that enough? Do you work for a bank and want to discuss this? 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 said on Twritter.

​In December 2021, FTX has built partnerships with several companies to develop its cryptocurrency business. As Fazzaco has reported most recently, FTX has, for example, formed a partnership with Canadian payments processing firm Nuvei Corporation to provide a reliable payment on and off-ramp for its users, and signed a deal with American professional basketball team Golden State Warriors to create and launch non-fungible tokens.