Visa just crashed the crypto party. The traditional finance giant joined the Global Dollar Network, a stablecoin consortium led by Paxos and Robinhood. Launched November 2024, they’re challenging market leaders Tether and Circle with their USDG token. What’s different? This group actually shares profits among members—imagine that! The network operates under both New York and Singapore regulations. Wall Street’s eyebrows are definitely raised at this unexpected move.
Visa has stepped into the crypto arena, becoming the first traditional finance giant to join the Global Dollar Network. The credit card behemoth is now rubbing shoulders with crypto firms like Paxos, Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, and Nuvei in a consortium that launched in November 2024. It’s not your everyday Wall Street move.
The consortium isn’t just another club for the financial elite. It’s designed to shake up the stablecoin market—a space currently dominated by Tether’s USDT and Circle’s USDC. These giants have had their run of the Ethereum blockchain long enough. Time for some fresh competition.
At the heart of this network is USDG, a stablecoin issued by Paxos with DBS as the primary banking partner handling cash management and reserves. Unlike typical stablecoins, USDG is backed by actual dollar deposits, short-term US government securities, and cash equivalents. No funny business here.
Paxos isn’t playing around with regulations either. They’re fully regulated by the New York State Department of Financial Services. And USDG? It complies with Singapore’s stablecoin regulations too. Double-regulated. That’s rare in crypto.
The technical infrastructure isn’t shabby. Paxos provides solid blockchain solutions for tokenization, custody, and trading. Robinhood brings its crypto expertise with cold storage security measures. Regular security reviews? Check. Third-party assessments? They’ve got those too.
Currently, USDG lives on Ethereum, but the consortium has big plans to expand to other blockchains. The network is invitation-based, allowing controlled access for qualified financial institutions looking to participate in the ecosystem. The network is directed by an advisory committee that includes representatives from all partner organizations to ensure collaborative decision-making. Regulatory hurdles might slow them down, but they seem determined. The stablecoin landscape is competitive as hell, and they know it.
What makes this consortium different is the yield sharing model. Traditional stablecoins keep all profits to themselves. Not these guys. They’re spreading the wealth among participating firms. Revolutionary? Maybe. Smart business move? Definitely.
Visa’s involvement signals a shift in how traditional finance views cryptocurrency. They’re not just dipping their toes anymore—they’re diving in headfirst. And why not? The potential for disruption is massive compared to the high-cost systems currently in place.
The consortium aims to accelerate stablecoin adoption worldwide. It’s about creating a more equitable model in a space that desperately needs it. Will they succeed against established players? Hard to say.
But one thing’s certain: Wall Street traditions are being challenged. The old guard is joining forces with the new wave of finance. And that might just change everything. Or not. Crypto has promised revolution before. Sometimes it delivers. Sometimes it crashes and burns spectacularly. Either way, Visa‘s move shows they think the risk is worth taking. While operating in a space with complex compliance scenarios, the consortium is positioning itself to navigate the regulatory landscape that has challenged many crypto ventures.
