Visa and Mastercard Back New USD Stablecoin to Rival Tether and USDC
A coalition of financial giants including Visa and Mastercard is launching a dollar-backed stablecoin that could shake up the crypto payments space.
If you thought the stablecoin market was getting crowded, buckle up. A new project backed by some of the biggest names in traditional finance — including Visa and Mastercard — is entering the ring, and it has its sights set squarely on the two reigning champions: Tether's USDT and Circle's USDC.
What makes this effort stand out isn't just the heavyweight financial backers. The project is also pulling in support from multiple crypto companies, suggesting it's designed to bridge the gap between old-school finance and the digital asset world. That kind of cross-industry coalition is rare, and it signals that major institutions are no longer content to watch the stablecoin market from the sidelines.
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One detail worth paying attention to: the project intends to keep the earnings generated from its reserves. Stablecoins typically back their tokens with assets like U.S. Treasury bills, which generate yield. Whoever holds onto that yield — the issuer, the user, or some split between them — is a big deal financially. Tether, for instance, has made billions this way. By retaining those reserve earnings, this new venture is essentially following a proven and very lucrative playbook.
For everyday users, a stablecoin backed by brands you already trust with your credit card could feel a lot more approachable than sending money through a lesser-known crypto issuer. Whether that brand recognition translates into real market share against USDT and USDC — which together dominate stablecoin volume by a wide margin — remains the key question. Competition in this space ultimately benefits users through better pricing, faster rails, and stronger regulatory compliance.
The stablecoin landscape is evolving fast, and this coalition could accelerate the timeline for mainstream dollar-pegged digital payments. Continue reading at Cointelegraph.
