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Open USD targets USDC
A new dollar-pegged stablecoin called Open USD (OUSD) is being launched by Open Standard with support from more than 140 companies, including Visa and Mastercard as well as crypto firms Coinbase, Ripple, OKX and Bybit.
“A coalition of more than 140 companies — among them Visa, Stripe, Mastercard, BlackRock, and Coinbase — announced today the formation of Open Standard and the launch of Open USD (OUSD), a new dollar-pegged stablecoin built to redistribute the economics of the $300 billion stablecoin market”
Open Standard says businesses will be able to mint OUSD “at no cost and with no artificial limits on volume,” and keep earnings from the coin’s reserves, with the project described as a potential challenge to Tether’s USDT and Circle’s USDC.
Circle’s stock fell sharply after the announcement, with one report saying the share price dropped by more than 16% on Tuesday to $63.63, while another said Circle shares fell more than 16% after Open Standard unveiled Open USD.
The launch is dated to June 30, 2026, with the actual launch of Open USD expected later in the year, and Open Standard says OUSD will launch “later this year.”
Circle and Visa respond
Circle CEO Jeremy Allaire said the company welcomed “continued innovation and competition in the space,” adding that it would soon expand support for US dollar-pegged and non-US dollar stablecoins.
Tether CEO Paolo Ardoino wrote on X, “Player 2 has entered the game,” in response to the announcement, as Circle’s stock slipped and the new consortium positioned itself as a serious challenge to the two largest stablecoin issuers.
Visa’s head of crypto, Cuy Sheffield, wrote on X that “Today, we announced Visa is joining Open Standard alongside Stripe, Coinbase, Mastercard, American Express, BlackRock, U.S. Bank, BBVA, Standard Chartered and 100-plus initial partners,” framing the effort as a shared stablecoin for the global financial system.
The consortium’s economic pitch centers on zero fees for minting and redeeming and a revenue-sharing model that sends nearly all earnings from U.S. Treasury reserves back to partner firms after a nominal management fee, which is presented as a direct contrast to how USDC earns yield for Circle.
Regulation and market stakes
The push for Open USD is occurring as US stablecoin regulation moves forward, with President Donald Trump signing a bill to establish a regulatory framework for payment stablecoins, called the GENIUS Act, into law last year.
“Source: Open Standard Because it’s backed by so many high profile companies, the coin could be in a position to challenge Tether’s USDT and Circle’s USDC, currently the two largest stablecoins by market capitalization”
TradingView says many experts expect the legislation, “awaiting federal authorities finalizing regulations for implementation,” could pave the way for the stablecoin market to grow as companies begin issuing and accepting digital assets more easily.
For the stablecoin market itself, one account says the current size is more than $312 billion and projected to reach up to $4 trillion by 2030, while another says the reserve-income model is designed to redistribute economics across a $300 billion stablecoin market.
The stakes for Circle are framed around USDC’s reserve-yield business model, with one report noting that USDC generates revenue largely by keeping the yield on the reserves backing it, and warning that Open USD’s zero-fee structure and revenue sharing could route adoption away from USDC.
