Visa is joining the Global Dollar Network (USDG), a stablecoin consortium convened by U.S. regulated digital asset firm Paxos, alongside cryptocurrency and fintech heavyweights like Robinhood, Kraken and Galaxy Digital, according to two people familiar with the plans.
Visa is the first traditional finance incumbent known to be joining USDG, whose initial cohort of members also includes Anchorage Digital, Bullish (the owner of CoinDesk) and Nuvei.
The stablecoin business, whose lucrative potential is opening up to more firms amid regulatory change, has been dominated by the first and second largest issuers of USD-pegged tokens, Tether’s USDT and its smaller sibling Circle with USDC.
USDG is designed to share the yield with participant firms that can create connectivity and liquidity, unlike Tether, for example, which retains the interest gained from its stablecoin reserves.
The large card networks have been busy partnering in the crypto space. Visa was recently reported to be helping Sam Altman’s World Network, and Mastercard is working with the non-custodial wallet MetaMask.
Visa did not respond to requests for comment. A representative of Paxos said the firm can not comment on prospective partners.
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