Visa, Mastercard and Coinbase back new US dollar stablecoin initiative

Wednesday 01 July 2026 - 08:41

By: Azzat Manal

Visa, Mastercard and Coinbase back new US dollar stablecoin initiative

A coalition of leading financial and technology companies, including Visa, Mastercard, Coinbase, and more than 140 other partners, has announced the launch of a new US dollar-backed stablecoin designed to expand the use of digital assets in global commerce and cross-border payments.

The new stablecoin, known as OpenUSD, is the result of a collaboration that began in 2024 under a broader initiative called the Global Dollar Network. The project aims to develop a shared infrastructure that enables businesses and financial institutions to use stable digital currencies more efficiently across international markets.

The alliance believes the initiative will accelerate the adoption of stablecoins by addressing some of the key challenges facing businesses, including transaction costs, payment speed, interoperability, and scalability across different financial systems.

The stablecoin will be issued and managed by Open Standard, the company responsible for operating the network. According to Chief Executive Officer Zach Abrams, stablecoins already offer significant advantages due to their price stability and ease of use, but broader adoption requires a more efficient and cost-effective infrastructure.

Under the project's economic model, income generated from the reserve assets backing the stablecoin will be shared among participating partners after operational expenses are deducted. Supporters say this approach is intended to create long-term incentives for companies contributing to the network's development and expansion.

Stablecoins are digital assets designed to maintain a stable value by being linked to traditional currencies such as the US dollar. They have become increasingly popular for payments, international money transfers, decentralized finance, and digital trading because they combine the speed of blockchain technology with lower price volatility than many cryptocurrencies.

The launch comes as governments and regulators worldwide continue developing legal frameworks for stablecoins. Financial institutions have also shown growing interest in blockchain-based payment systems as demand rises for faster, more transparent, and lower-cost international transactions.

Industry analysts view the participation of established payment companies such as Visa and Mastercard as another sign that traditional finance and digital assets are becoming more closely integrated, potentially accelerating the mainstream adoption of blockchain-powered payment solutions in the years ahead.