Visa, Mastercard Back New USD Stablecoin to Rival USDT and USDC
A major financial coalition is launching a US dollar stablecoin that keeps reserve earnings, directly challenging Tether and Circle.
A heavyweight consortium of financial and crypto companies — including Visa and Mastercard — is throwing its weight behind a new US dollar stablecoin, and the setup could shake up the entire stablecoin market. This isn't a scrappy startup play. When two of the world's largest payment networks co-sign a project, you pay attention.
What makes this one different is the reserve earnings model. The project is structured so that the companies backing it retain the yield generated from the dollar reserves sitting behind the coin. That's a massive revenue lever — Tether reportedly pulled in billions in profit last year doing exactly that. Now a well-capitalized coalition wants a cut of that same action.
Read more Bitcoin Faces $58K Breakdown Risk as Dollar Surges vs. Yen →
The target is clear: USDT and USDC, the two dominant stablecoins by market cap. Tether and Circle have long controlled this space, but neither has the traditional finance muscle that Visa and Mastercard bring to the table. Merchant relationships, payment rails, regulatory credibility — this consortium walks in with all of it.
For traders, this matters beyond the headline. A well-backed stablecoin with deep payment-network integration could accelerate crypto's use in everyday commerce, tighten competition on fees, and eventually pressure USDT and USDC's market share. Watch liquidity flows if this coin launches on major exchanges — early adoption signals will be telling.
Continue reading at Cointelegraph
