A new crypto stablecoin created by Visa, Mastercard, and finance company Stripe will soon hit the cryptocurrency market, according to reports. The global payment platforms are said to be developing the joint stablecoin, likely pegged to the US dollar, according to sources familiar with the partnership.
The same sources also claim that Coinbase (COIN) is looking into the possibility of participating in the stablecoin platform. The stablecoin market has become popular and important in the last two years, as digital assets become more normalized. At the time of writing, the total stablecoin market cap is about $325 billion, according to CoinGecko data. The market is dominated by Tether’s USDT, at $115 billion. However, the three entities, with the help of Coinbase, could very well create a new coin that could compete with USDT.
The cryptocurrency popularity surge is now inching toward new highs as Gen Z has now joined the race to bolster the domain’s presence. Gen Z has emerged as the most promising users of cryptocurrency as of late, using stablecoins in particular to conduct daily transactions and to complete mundane chores. Furthermore, several traditional investment firms and banks are now jumping onto the train. This year, Western Union and SoFi Technologies announced their own projects. JPMorgan, Bank of America, and UBS are also big-name firms that are working on stablecoins. Now, Visa, Mastercard and Stripe are looking to take part with their own stablecoin.
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Stripe acquired stablecoin infrastructure firm Bridge in late 2024 for $1.1 billion. Mastercard, which acquired BVNK earlier this year, said this week it plans to expand always-on stablecoin settlement. In April, Visa announced it was expanding a settlement pilot to nine blockchains, adding Base, Polygon, Canton Network, Arc, and Tempo to existing support for Ethereum, Solana, Avalanche, and Stellar.
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