Visa Joins Paxos’ Stablecoin Network with Robinhood, Kraken
Visa has officially joined Paxos’ Global Dollar Network (USDG) — a consortium designed to push stablecoin adoption beyond crypto diehards. The network, which already includes Robinhood, Kraken, Galaxy Digital, Bullish, Anchorage Digital, and Nuvei, is now backed by its first major traditional finance powerhouse.
Visa Dives Into Paxos' Yield-Sharing Stablecoin Model
Unlike Tether and Circle, which pocket all yield from their reserve assets, Paxos is flipping the stablecoin game. With USDG, companies that help increase usage, liquidity, and adoption of the token will share in the profits. That’s a major incentive for firms like Visa, who are eyeing the future of digital payments. For Visa, this isn’t new territory—it has tested USDC settlements since 2021. But this move signals a bolder bet on the stablecoin space, where real dollars and real users are flowing faster than ever.
Why This Move Matters
USDG could reshape the stablecoin ecosystem by giving partners skin in the game. It’s not just about holding reserves—it’s about building a network effect that rewards participation. At the same time, regulatory frameworks around stablecoins are starting to form, pushing traditional finance into the spotlight. With the U.S. government increasingly interested in stablecoin legislation, Visa’s move feels strategic—a way to stay ahead while shaping how this market evolves.
The Bigger Stablecoin Picture
Outside of USDG, Binance is surging in the USDC scene. Its holdings are up 365% year-over-year, putting it on track to surpass Coinbase, which currently controls an estimated $12 billion in USDC. That’s not just a bragging right—it’s a sign that the race for stablecoin dominance is heating up fast.
