Payment Giants Join Forces on New Stablecoin

A reported consortium plan involving Stripe, Visa, Mastercard, and Coinbase would create a new stablecoin aimed at challenging Tether and Circle in digital-dollar payments.

The structure would place three of the world's most important payment companies beside one of the largest crypto exchanges, giving the proposed stablecoin a rare mix of merchant reach, card-network relationships, crypto distribution, and stablecoin infrastructure.

The companies have not yet released a full public launch announcement, but they already have the necessary infrastructure in place to support the new token. Stripe has completed its acquisition of Bridge, which provides stablecoin issuance, orchestration, and payment infrastructure for businesses. Mastercard has also been expanding its stablecoin settlement options, including always-on settlement over blockchain rails.

Coinbase's involvement adds another layer of complexity, as it is still a major distribution partner for Circle's USDC stablecoin. However, this could be an opportunity for Coinbase to diversify its offerings and position itself for a market where stablecoin issuance and settlement volume are becoming increasingly important.