- Stripe, Visa, Mastercard, and Coinbase are reportedly working on a stablecoin initiative.
- The proposed entrant would target a $325 billion stablecoin market currently led by Tether.
- Coinbase’s involvement is notable as it is one of USDC’s largest distribution partners.
The stablecoin market may be heading toward its biggest competitive transition since USDT and USDC took over the sector. Stripe, Visa, Mastercard, and Coinbase are reportedly working on a new stablecoin initiative that would bring together some of the largest names in payments and crypto.
While the companies have not publicly confirmed the project, multiple reports indicate discussions are underway around a new stablecoin platform and potentially a jointly backed token.
If launched, the group would enter a market currently dominated by Tether and Circle, which together control roughly 80% of the stablecoin sector. The total stablecoin market is valued at about $325 billion.
Tether’s USDT remains the largest stablecoin with a market capitalization of around $115 billion, while Circle’s USDC stands near $76 billion.
Payments Giants Move Deeper Into Stablecoins
The reported initiative follows a series of aggressive moves in stablecoins by the participating companies.
Stripe acquired stablecoin infrastructure provider Bridge for $1.1 billion in 2024, giving the company direct access to stablecoin issuance and payment technology. Bridge has already secured customers, including Deel and Klarna.
Mastercard expanded its stablecoin strategy through the acquisition of BVNK earlier this year in a deal reportedly worth up to $1.8 billion. The company has also announced plans to support expanded on-chain settlement and around-the-clock payment processing using regulated stablecoins.
Visa has been building its own stablecoin settlement network. In April, the company expanded its pilot program from four to nine blockchains, adding Base, Polygon, Canton Network, Arc, and Tempo alongside existing support for Ethereum, Solana, Avalanche, and Stellar.
Rather than treating stablecoins as competition, major payment networks are increasingly integrating them into their existing payment infrastructure.
Coinbase’s Role Creates New Questions
Coinbase remains closely tied to Circle through USDC. Since August 2023, Coinbase and Circle have operated under a revenue-sharing agreement tied to USDC reserves and circulation.
The exchange retains all interest income generated from USDC held on its platform while sharing revenue from USDC circulating across external platforms and decentralized finance applications.
As of the first quarter, Coinbase and its users held approximately $19 billion worth of USDC, representing more than 25% of the stablecoin’s circulating supply. The current agreement is scheduled for renewal in August.
A new stablecoin backed by Coinbase, alongside Visa, Mastercard, and Stripe, would place the exchange in direct competition with one of its most important existing partners.
Related: EU and New York Regulators Sign Deal to Share Stablecoin Data
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