Visa Joins Paxos and Robinhood's Stablecoin Initiative
Visa is entering the Global Dollar Network, a consortium focused on stablecoins, joining major players like Robinhood and Kraken.
Visa is making its entry into the Global Dollar Network (USDG), a stablecoin consortium initiated by the digital asset firm Paxos, which also includes notable fintech companies such as Robinhood, Kraken, and Galaxy Digital, as revealed by two sources familiar with the situation.
This marks Visa as the first major player from traditional finance to join USDG, whose founding members also encompass Anchorage Digital, Bullish (the parent company of CoinDesk), and Nuvei.
Key Points:
- Visa is the first traditional finance entity joining the USDG consortium.
- USDG aims to distribute yield to member firms that foster liquidity and connectivity.
The potential of the stablecoin sector is becoming increasingly attractive to various companies amidst regulatory changes, traditionally dominated by Tether’s USDT and Circle’s USDC.
USDG plans to offer yields to participating firms, differentiating itself from Tether, which typically retains interest from its stablecoin reserves.
In the evolving crypto landscape, major credit networks are forming partnerships. Visa has been reported to assist in Sam Altman’s World Network, while Mastercard collaborates with the non-custodial wallet MetaMask.
Visa declined to comment on this matter, and Paxos representatives stated they can’t discuss potential partners.
