A major player in traditional finance, Visa, is set to become part of the Global Dollar Network (USDG), a stablecoin collective led by a U.S.-based digital asset firm, Paxos. This initiative also boasts prominent cryptocurrency and fintech entities, including Robinhood, Kraken, and Galaxy Digital, according to two insiders close to the situation.
Visa will be the first established financial institution to align with USDG, which already counts Anchorage Digital, Bullish, and Nuvei among its founding members.
The stablecoin landscape, now ripe for expansion due to shifting regulations, has long been dominated by the largest issuers of U.S. dollar-pegged tokens—Tether’s USDT and Circle’s USDC.
In contrast to Tether, USDG aims to redistribute yield to participating entities, fostering connectivity and liquidity rather than keeping interest generated from reserve assets.
Large card networks are increasingly forming partnerships in the cryptocurrency domain. Recently, Visa was reported to be collaborating with Sam Altman’s World Network, while Mastercard is engaging with the non-custodial wallet service MetaMask.
No comments have been received from Visa. Meanwhile, a Paxos spokesperson indicated that they cannot provide insights regarding potential partners.
Read more: Stablecoins Are a ‘WhatsApp Moment’ for Money Transfers, a16z Says