Visa, Mastercard Back New USD Stablecoin to Rival Tether and USDC
A coalition including Visa and Mastercard is launching a US dollar stablecoin that retains reserve earnings, targeting the dominance of USDT and USDC.
A powerful alliance of financial and crypto companies, including payment giants Visa and Mastercard, is joining forces to launch a new US dollar-backed stablecoin, positioning the project as a direct challenger to the two largest stablecoins currently on the market — Tether's USDT and Circle's USDC.
One of the most notable features distinguishing this initiative from its rivals is its approach to reserve earnings. Unlike some existing stablecoin models, the consortium behind the new token intends to retain the income generated by the reserves backing the digital currency — a structure that could make the project financially attractive to its corporate backers and participants.
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The entry of mainstream financial heavyweights like Visa and Mastercard into the stablecoin race marks a significant escalation in institutional interest in dollar-pegged digital assets. Both companies already have deep roots in crypto payment infrastructure, but a co-owned stablecoin venture represents a more aggressive and direct stake in the digital currency ecosystem.
Tether's USDT and Circle's USDC have long dominated the stablecoin market by market capitalization, and any credible challenge would require both substantial liquidity and broad merchant and exchange acceptance — resources that a Visa- and Mastercard-backed effort could realistically mobilize. Whether the new stablecoin can convert that institutional firepower into market share remains the central question for the industry.
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