NewsMeter
A coalition including Visa, Mastercard, and an unspecified number of crypto companies is developing a US dollar stablecoin that keeps reserve earnings inside the consortium — departing sharply from the structure used by the two dominant players, Tether's USDT and Circle's USDC.
The project is positioning itself as a direct competitor for the top spot in stablecoin market capitalization.
The Reserve Earnings Mechanism Is the Story The defining feature of this consortium stablecoin is not its peg or its backers — it is who pockets the yield generated by the reserves held against circulating supply.
Under the Tether and Circle models, reserve income flows to the issuer. This new structure, as described, routes those earnings back to the member institutions. That distinction matters commercially.
Keep reading