- A massive new stablecoin called Open USD (OUSD) launched yesterday, backed by a consortium of over 140 financial and tech giants including VISA, Mastercard, and BlackRock.
- The consortium model, which shares the interest from reserve assets with partners, is inspired by Hyperliquid‘s USDH and directly threatens Circle‘s profitable USDC business.
- Investors reacted by panicking out of Circle‘s stock, collapsing its price by 17% and erasing $3.3 billion in market value in a single day.
Yesterday, a powerful consortium of financial titans including Visa, Mastercard, Stripe, and BlackRock launched Open USD (OUSD), a new stablecoin designed to compete directly with Circle‘s USDC. Its economic model, which shares the yield from its reserves, was inspired by Hyperliquid‘s earlier USDH stablecoin.
Consequently, investors immediately sold off shares of Circle Internet Group, causing its stock to plummet. The company lost $3.3 billion in market capitalization as its common stock collapsed by 17% during Tuesday’s trading session.
The consortium model represents a fundamental threat to Circle’s business. While Circle keeps most yield from its $73 billion in USDC reserves, OUSD partners will receive most of the interest from its US Treasury holdings.
This profitable structure is why stablecoin issuance is so lucrative. Tether, for example, claims to be one of the world’s most profitable companies per employee.
Hyperliquid pioneered this shared-yield approach with USDH in 2025. Its governance vote involved bidders competing to offer the largest share of reserve yield back to the ecosystem.
Open Standard, the OUSD operator, frames its stablecoin as an open and aligned alternative. Its launch post argues businesses need something “aligned to their interests.”
Circle CEO Jeremy Allaire tried to calm markets, stating “USDC remains the most trusted, widely adopted, institutional-ready stablecoin in the world.” However, CRCL stock closed at $62.63, now 76% below its 52-week high.
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