Visa Joins Consortium of Companies Developing a New Stablecoin

The consortium also includes several companies active in the cryptocurrency and financial technology sectors, such as Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, and Nuvei

A consortium focused on launching a new stablecoin, USDG, is set to include several companies from the cryptocurrency and financial technology sectors, according to individuals with knowledge of the matter cited by Coindesk.com. Among the consortium members are Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, and Nuvei.

The consortium aims to introduce a stablecoin pegged to the U.S. dollar, with the goal of enabling seamless cryptocurrency payments within Visa's merchant network. The initiative will also integrate a shared yield model, distributing interest income among participating firms that contribute to network liquidity and integration.

The move marks the first known involvement of a major traditional financial services provider in the consortium. While details regarding Visa's contribution remain limited, this participation signals a continuation of its broader engagement with digital asset infrastructure and crypto-related initiatives.

The stablecoin, being developed by a consortium of fintech companies, is designed to offer a unique revenue model compared to dominant stablecoins such as Tether (USDT) and Circle’s USD Coin (USDC). Instead of centralising the yield generated from reserves, USDG intends to distribute interest income among participating firms.

The consortium, which includes several companies from the cryptocurrency and financial technology sectors, is focused on launching a new stablecoin pegged to the U.S. dollar, according to individuals with knowledge of the matter. Among the consortium members are Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, and Nuvei.

The move marks the first known involvement of a major traditional financial services provider in the consortium. While details regarding Visa's contribution remain limited, this participation signals a continuation of its broader engagement with digital asset infrastructure and crypto-related initiatives.

The stablecoin, being developed by a consortium of fintech companies, is designed to offer a unique revenue model compared to dominant stablecoins such as Tether (USDT) and Circle’s USD Coin (USDC). Instead of centralising the yield generated from reserves, USDG intends to distribute interest income among participating firms that contribute to network liquidity and integration.

The consortium's formation comes amid increased interest in the stablecoin sector from both fintech companies and financial institutions, driven by shifting regulatory dynamics and growing commercial opportunity. Despite this, Tether and Circle continue to lead the space in terms of issuance volume.

Earlier this year, reports surfaced of Sam Altman's Worldcoin initiative seeking partnerships with major card issuers to bring Visa card capabilities to World Network wallets.

As detailed by CoinDesk, which cited a person familiar with the matter, the move aimed to bring Visa card capabilities to World Network wallets, including a suite of fintech and FX applications, and fiat on and off-ramps, while also enabling stablecoin-based payments to merchants that are part of Visa's network. According to the same sources, Tools of Humanity, the company co-founded by Open AI's CEO Sam Altman that manages Worldcoin and World Network, send out a request for product forms to card issuers.

This partnership request follows Mastercard's collaborations with the decentralised wallet provider MetaMask and the company's broader engagement with the cryptocurrency sector.