Financial companies join forces on Open USD stablecoin
More than 140 financial and crypto companies have joined Open Standard to launch Open USD (OUSD), a dollar-pegged stablecoin that lets partners mint tokens at no cost, keep reserve earnings, and potentially challenge market leaders Tether's USDT and Circle's USDC.
In a Tuesday notice, Open Standard said Visa, Mastercard, Coinbase, Ripple, OKX and Bybit are among the backers. As financial companies join forces across payments and crypto, the project signals a push to reshape who captures value from dollar-backed digital cash.
Key Takeaways
- Open Standard is launching Open USD (OUSD) with support from more than 140 companies, including Visa and Mastercard.
- Businesses can mint OUSD at no cost with no artificial volume limits and retain earnings from the coin's reserves.
- The consortium could challenge USDT and USDC, the two largest stablecoins by market capitalization.
- Circle Internet Group shares fell more than 16% to $63.63 on Tuesday following the announcement.
- OUSD is expected to launch later this year as the stablecoin market exceeds $312 billion, per DefiLlama.
What is Open USD and how will it work?
Open Standard said OUSD is a US dollar-pegged stablecoin designed for businesses that want to mint and redeem tokens without fees or artificial caps on volume. Participating firms can keep earnings generated by the reserves backing the coin, rather than ceding that revenue to a single issuer.
The model differs from today's dominant stablecoins, where reserve interest typically flows to the issuer. Open Standard's Tuesday notice said partners could receive all of the earnings from OUSD reserves, a structure backers argue aligns incentives across the network.
Why do financial companies join forces on stablecoins now?
Stablecoins have moved from a crypto niche into core payment infrastructure. According to DefiLlama data cited by Cointelegraph, the market tops more than $312 billion and is projected to reach up to $4 trillion by 2030.
US President Donald Trump signed the GENIUS Act into law last year, establishing a regulatory framework for payment stablecoins. Many experts expect the legislation, pending final federal rules, could help more companies issue and accept digital dollar assets.
Can Open USD challenge USDT and USDC?
Because OUSD is backed by high-profile payment networks and crypto firms, the project could challenge Tether's USDT and Circle's USDC, currently the two largest stablecoins by market capitalization. Rhino.fi co-founder and CEO Will Harborne said Open USD is the first launch with a real chance to win share from USDT and USDC because reserve revenue flows back to holders, though he warned the same incentive could drive fragmentation at scale.
Markets reacted quickly. Circle Internet Group shares dropped more than 16% on Tuesday to $63.63. Circle CEO Jeremy Allaire said the company welcomed continued innovation and competition, and planned to expand support for US dollar-pegged and non-US dollar stablecoins.
What does this mean for crypto markets right now?
The OUSD news landed as broader markets showed mixed signals. Bitcoin fell toward $58,000 around Tuesday's Wall Street open, while the US dollar hit its highest levels against the Japanese yen since 1986—a move some analysts see as a potential headwind for crypto.
Open Standard said OUSD will launch later this year. For more on payments, regulation, and digital assets, follow our Fintech & Crypto Alerts coverage.