Visa Joins Paxos' USDG Consortium with DBS Bank

Visa is set to join the Global Dollar Network (USDG), a stablecoin consortium led by Paxos, marking the first traditional finance player to enter this initiative. The consortium includes notable participants such as Robinhood, Kraken, Galaxy Digital, and DBS Bank, aiming to promote stablecoin adoption and utilize Paxos's USDG, which is regulated by the Monetary Authority of Singapore. This move signifies Visa's expanding involvement in the digital asset space and highlights the trend of traditional financial institutions collaborating with crypto firms. The announcement led to immediate bullish reactions in the crypto market, with significant increases in trading volumes and prices for Bitcoin and Ethereum. USDG seeks to differentiate itself by offering yield sharing and maintaining a 1:1 peg with the US dollar, backed by high-quality liquid assets. Visa's participation reflects an increasing regulatory and financial interest in stablecoins, traditionally dominated by Tether and Circle.