- A consortium including VISA, Mastercard, BlackRock, and Coinbase is backing a new stablecoin, Open USD (OUSD), to challenge Circle’s USDC and Tether’s USDT.
- OUSD’s defining feature is a revenue-sharing model where partners receive income from the stablecoin’s reserves, unlike incumbents who retain most of that revenue.
- The launch coincides with advancing US crypto legislation, including the CLARITY Act, which supporters argue will spur institutional adoption.
- Circle, Tether, and Paypal are not participating in the Open Standard project behind OUSD.
- The partnership also involves major banks like BNY and Standard Chartered, fintechs such as Shopify, and tech giants including Google and IBM.
On Tuesday, a powerful coalition of payment giants, financial institutions, and crypto firms unveiled Open USD (OUSD), a new stablecoin designed to compete in the $300 billion market. Visa, Mastercard, Stripe, BlackRock, and Coinbase are leading the charge against dominant incumbents Circle and Tether.
The OUSD project, explained by Open Standard, introduces a novel economic structure. Nearly all reserve income, minus a small fee, will be shared with companies that adopt and distribute the token.
Consequently, this model directly challenges Circle and Tether, which retain most revenue from their tokens. The consortium includes banks like BNY and Standard Chartered, alongside fintechs and crypto firms such as Shopify and Ripple.
However, notable absentees are Circle, Tether, and PayPal. Meanwhile, the launch is timed with a shifting US regulatory landscape.
The CLARITY Act is advancing toward a Senate vote, while the GENIUS Act has already set federal standards. Patrick Witt, a White House advisor, framed the launch as evidence of regulatory payoff.
“Another example of how clear rules of the road can unlock massive value,” he wrote. He added that what GENIUS did for stablecoins, the Clarity Act will do for all other digital assets.
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