Visa Joins Global Dollar Network Stablecoin Consortium Led by Paxos
Visa is joining the Global Dollar Network (USDG), a consortium of stablecoin providers led by Paxos, which includes firms like Robinhood and Kraken. This makes Visa the first traditional finance institution to join USDG.
The stablecoin market is expanding as regulatory changes allow more firms to enter. Currently, the market is primarily dominated by Tether's USDT and Circle's USDC.
Key features of USDG include:
- Sharing yield with member firms
- Creating connectivity and liquidity among participants
Unlike Tether, which retains interest from reserves, USDG aims for collaborative financial benefits.
Visa has previously engaged in partnerships within the crypto sector, including efforts related to Sam Altman’s World Network and collaborations with Mastercard on blockchain projects.