Visa is planning to join the Global Dollar Network (USDG), a stablecoin network initiated by Paxos, a U.S.-regulated digital asset firm.
The network already has heavyweights in crypto and fintech such as Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, and payments firm Nuvei. Visa would be the first TradFi firm to be a part of this venture.
The Global Dollar Network was established in November 2023. Its goal is to promote the use of stablecoins and make them more useful in everyday life.
The network operates with a new stablecoin known as USDG (Global Dollar), which is issued by Paxos and supervised by the Monetary Authority of Singapore (MAS). DBS, the largest bank in Southeast Asia, holds reserves for USDG and guarantees it to be backed in full and redeemable on demand.
USDG is unique among stablecoins such as Tether’s USDT and Circle’s USDC. It is meant to distribute its earnings (interest or yield) from its reserves with the businesses that contribute to the growth of the network by enhancing liquidity and connections.
Companies such as Telter retain all the interest themselves. USDG initially started on Ethereum and is set to expand to other accredited blockchains, such as Solana.
Visa’s motivation for joining USDG aligns with its bigger plan of engaging deeper in the cryptocurrency space. Visa was recently reported to be working with Sam Altman’s World Network (previously Worldcoin) to introduce payment functionalities into World’s self-owned crypto wallet.
This could allow users to spend stablecoins on its international network and freely switch between the crypto system and fiat currency system.
Although Visa hasn’t officially confirmed its participation. If finalized, Visa’s involvement could help bring stablecoins into mainstream financial systems and boost the credibility of USDG.
Also Read: Teltlk to Launch Visa Card for Pi Coin and USDT Payments
