Visa and Mastercard Back New USD Stablecoin to Rival USDT and USDC
A major stablecoin project backed by Visa, Mastercard, and crypto firms aims to challenge Tether and Circle for market dominance.
Big money just entered the stablecoin arena. A new US dollar stablecoin project backed by Visa, Mastercard, and a coalition of crypto companies is gearing up to take on the two heavyweights of the space — Tether's USDT and Circle's USDC — both of which currently sit at the top of the stablecoin market cap rankings.
What makes this project stand out is the reserve earnings angle. The consortium is structured so that participating financial companies keep the yield generated from the dollar reserves backing the stablecoin. That's a massive incentive for traditional finance players who've watched Tether rake in billions in Treasury interest while retail holders saw none of it.
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For traders, this is worth watching closely. If Visa and Mastercard's distribution muscle gets behind a new stablecoin, adoption could scale fast — especially across existing payment rails where both companies already dominate. A well-capitalized, institutionally backed stablecoin with built-in revenue sharing changes the competitive math for USDT and USDC overnight.
Tether has long faced questions about reserve transparency, and Circle has struggled to turn USDC's regulatory-friendly reputation into sustained market share gains. A deep-pocketed rival with household-name backers could exploit both vulnerabilities simultaneously. This isn't just another stablecoin launch — it's a direct shot at reshaping who controls dollar-denominated liquidity in crypto.
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