Visa, Mastercard, BNY, Coinbase Launch Stablecoin Venture

More than 140 companies from the payments and banking sectors, along with technology firms, have formed a new venture to issue a dollar-pegged stablecoin, the group said. The initiative includes Visa, Mastercard, BNY Mellon, and Coinbase, among others.

The stablecoin is designed for everyday business transactions, the group said, aiming to expand the use of digital tokens beyond crypto trading into areas like cross-border payments and merchant settlement. The venture will issue the token on multiple blockchain networks, according to the announcement.

Stablecoins have grown to over $150 billion in market cap. They remain largely confined to crypto exchanges. The new venture seeks to build the infrastructure for mainstream adoption, the group said. The involvement of major payment networks and banks signals a shift toward institutional use of digital currencies for real-world commerce.

Mastercard, which has an Alpha Score of 72 on AlphaScala, is one of the key participants. The company's involvement suggests it sees stablecoins as a complement to its existing payment rails. Mastercard has previously experimented with blockchain-based payments and central bank digital currencies.

The venture will compete with existing stablecoins like USDC and USDT. The group said the backing from payment networks and banks would help it gain merchant acceptance. The stablecoin will be fully reserved and audited, the group said, aiming to address concerns about transparency that have dogged some existing tokens.

The initiative also includes technology firms that will provide the infrastructure for issuance and custody. Coinbase will likely play a role in distribution, given its existing crypto exchange and custody business, the group said. BNY Mellon will provide custody services, according to the announcement.

The stablecoin initiative comes as U.S. lawmakers debate legislation that would create a federal framework for stablecoins. The group said it supports efforts to establish clear rules. Existing stablecoin issuers like Circle and Tether have faced scrutiny over reserves and transparency. The new venture's promise of full reserves and regular audits could differentiate it, the group said.

The stablecoin will be issued on multiple blockchains, including Ethereum and Solana, the group said. That would allow it to be used across different decentralized finance applications and payment networks.

The group said it is working with regulators in multiple jurisdictions to ensure compliance. The stablecoin will be issued under a regulatory framework that meets anti-money laundering and know-your-customer requirements, the group said.

The venture plans to launch the stablecoin in the second half of 2025, pending regulatory approvals. The group said it expects the token to be used initially for cross-border business payments and later for consumer transactions.