Visa Joins Paxos’ Stablecoin Network with Robinhood, Kraken

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According to insiders, Visa is now part of a growing list of members. This list includes Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish (CoinDesk’s parent company), and Nuvei.

This marks the first time a major traditional finance player has joined USDG. It’s a clear sign that stablecoin adoption is no longer just for crypto natives. Paxos, a U.S.-regulated digital asset firm, launched the consortium to build a new kind of dollar-backed token ecosystem, one that splits the interest earned from reserves with participating firms.

Visa Joins Paxos’s Yield-Sharing Stablecoin Model

That’s a major difference from top stablecoin issuers like Tether (USDT) and Circle (USDC). Tether, the largest by market cap, keeps the profits it earns from holding reserve assets. But with USDG, Paxos is flipping the script — offering yield-sharing to firms that help increase usage, liquidity, and global connectivity. In other words, Paxos is sweetening the pot for companies willing to roll up their sleeves and help grow the ecosystem.

Visa’s entrance into this space isn’t out of left field. The payments giant has been testing stablecoin settlement rails since at least 2021, including pilots involving USDC on the Ethereum and Solana blockchains. But joining USDG signals a deeper push into digital dollars — and possibly a bid to stay ahead of the curve as more of the world’s money moves onchain.

This also comes at a time when U.S. lawmakers are eyeing stablecoins more seriously, with bipartisan talks picking up steam. As rules around stablecoins get clearer, more firms — both crypto and traditional — are looking to grab a seat at the table. With USDG offering a more collaborative model, it could be a breath of fresh air in a space often dominated by a handful of big players.

More About Stablecoins

Binance might soon surpass Coinbase as the largest holder of USDC. While much of the conversation has focused on Circle’s distribution costs to Coinbase, Binance’s USDC supply has seen explosive growth, increasing by 365% year-over-year.

This surge could allow Binance to overtake Coinbase’s estimated $12 billion in USDC holdings, highlighting the growing prominence of Binance in the stablecoin space. As Binance continues to expand its offerings and liquidity, it may become a major player in USDC accumulation, potentially reshaping the competitive landscape.

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