Visa is expected to become a member of the Global Dollar Network (USDG), a stablecoin consortium created by Paxos, CoinDesk reported on Monday.
Citing sources familiar with the plans, the report indicates Visa would join fintech and digital asset firms including Robinhood, Kraken, and Galaxy Digital in the USDG, an initiative designed to advance regulated, transparent stablecoin infrastructure with yield sharing.
Visa Could be First TradFi Backer of USDG Initiative
If confirmed, Visa will be the first traditional finance (TradFi) company to support the USDG initiative.
Current USDG members are Robinhood, Kraken, Galaxy Digital, Bullish (CoinDesk’s owner), Anchorage Digital, and payments platform Nuvei.
USDG Focuses on Stablecoin Adoption and Real-World Uses
Launched in November, USDG aims to increase stablecoin adoption and promote practical applications.
The consortium intends to develop and expand the use cases for stablecoins.
Network Utilizes Paxos Global Dollar under Singapore Regulation
The USDG network uses Paxos’s Global Dollar (USDG) stablecoin.
USDG operates under the regulatory framework of the Monetary Authority of Singapore (MAS).
DBS Bank, a major Southeast Asian bank, is the custodian and banking partner, managing reserves for full backing and on-demand redemptions of USDG.
USDG Stablecoin Launched on Ethereum, Solana Support Planned
Initially launched on Ethereum, USDG plans to support other MAS-approved blockchains, including Solana, in the future.
This expansion aims to broaden USDG’s accessibility.
Yield Sharing Differentiates USDG from Competitors
USDG seeks to differentiate itself from market-leading stablecoins like Tether (USDT) and Circle (USDC) through yield sharing.
USDG plans to distribute yield to participating firms that enhance network connectivity and liquidity.
USDG Maintains 1:1 USD Peg with Fully Backed Reserves
The USDG stablecoin maintains a 1:1 peg with the US dollar.
It is backed by high-quality liquid assets, including dollar deposits and short-term US government securities.
Paxos publishes monthly reserve reports to verify the full backing of USDG.
Visa’s Stablecoin Efforts Include Worldcoin Wallet Integration
Visa’s potential USDG membership follows earlier reports of its engagement with World Network (formerly Worldcoin).
That engagement focused on adding card functionalities to the World’s self-custody crypto wallet, indicating Visa’s increasing interest in stablecoins.
Visa Collaboration to Enhance Stablecoin Payments via World Wallet
The Visa collaboration aims to enable World Wallet users to access fintech services, fiat on/off ramps and stablecoin payments through Visa’s global merchant network.
This integration intends to make stablecoin payments more accessible for users.
Also Read: World Network Explores Visa Collaboration
