A new stablecoin backed by more than 140 prominent firms across finance, payments, and technology aims to disrupt the dominant players in the USD-backed stablecoin market. The Open USD (OUSD) stablecoin, introduced by Open Standard LLC, promises a more open and cost-effective digital currency alternative. Its launch is scheduled for later this year.
Open USD’s business model distinguishes itself by allowing companies to mint or redeem tokens without fees or volume caps. Unlike the prevailing stablecoin frameworks, which typically allow issuers to retain interest income from reserves, Open USD redistributes most reserve earnings to its partners, charging only a management fee to cover operational costs. The initiative positions itself as a scalable, accessible stablecoin tailored to enterprise needs, emphasizing alignment with partners’ financial interests and high transaction throughput.
The consortium backing Open USD features a broad spectrum of influential companies. Payment networks including Visa, Mastercard, American Express, and Discover, plus banks like BlackRock, The Bank of New York Mellon, and Standard Chartered, have joined forces. Major tech corporations such as Google, Shopify, and IBM also support the project, alongside crypto firms including Coinbase, Ripple Labs, OKX, and MetaMask. Additional partners range from Klarna and Affirm to DoorDash, Western Union, and MoneyGram.
While the consortium boasts a diverse line-up, notable market incumbents Tether and Circle remain absent. Tether’s USDT and Circle’s USDC currently dominate stablecoin supply, controlling approximately 62% and 25% respectively as of recent data. Following Open USD’s announcement, Circle’s share price dropped sharply. Still, Circle’s CEO expressed openness to increased competition and innovation within the sector.
The blockchain network underpinning Open USD has not been officially confirmed, though Stripe’s associated payments network, Tempo, indicated that OUSD would be issued natively on its chain from launch.
This development arrives amid a broader surge in stablecoin initiatives catalyzed by recent regulatory frameworks, such as the Genius Act. Other major players have also entered the stablecoin space, including Klarna’s KlarnaUSD and signals from retail giants like Amazon and Walmart about future token issuance plans.
Consortium-led projects are not unprecedented. For example, Paxos launched USDG via the Global Dollar Network with partners like Mastercard and Robinhood, and large banks under JPMorgan Chase led a recent shared on-chain deposit network launch. However, Open USD distinguishes itself with its extensive backing and its novel economic model designed to favor broad partnership revenue distribution.