A powerful consortium comprising payments giants Stripe, Visa, Mastercard, and leading cryptocurrency exchange Coinbase is reportedly planning to launch a new stablecoin, aiming to disrupt the market dominance currently held by Circle and Tether. This strategic move, initially reported by The Information and further detailed by CoinDesk, signals a significant convergence of traditional finance and the digital asset space.
"Stripe, Visa, Mastercard and Coinbase are planning to form a consortium to issue a new stablecoin, according to sources, seeking to challenge the dominance of Circle and Tether," stated Yueqi Yang of The Information in a tweet.
The stablecoin market, valued at approximately $325 billion according to CoinGecko data, is largely controlled by Tether's USDT, with a market capitalization of $115 billion, and Circle's USDC, holding $76 billion. The formation of this consortium represents a direct challenge to this duopoly, leveraging the extensive distribution networks of its members.
Individual members have been actively increasing their involvement in the stablecoin ecosystem. Stripe acquired stablecoin infrastructure firm Bridge for $1.1 billion in late 2024, enhancing its capabilities in this area. Mastercard, which purchased stablecoin firm BVNK earlier this year, recently announced plans to expand its always-on stablecoin settlement options. Visa has also been expanding its stablecoin settlement pilot to include nine blockchains, demonstrating its commitment to digital currency infrastructure.
Coinbase, a major player in the crypto space, introduced a white-label stablecoin service and Coinbase Business for stablecoin payments last year. The exchange currently has a revenue-sharing agreement with Circle, the issuer of USDC, which is up for renewal in August. This potential new stablecoin initiative could place Coinbase in direct competition with its existing partner. The consortium's entry is expected to accelerate the integration of blockchain technology into mainstream financial services, offering faster and more cost-effective payment solutions.
