Key Highlights
- Open USD (OUSD) has debuted across Ethereum, Solana, Base, and Tempo networks with commitments exceeding $1 billion in liquidity support.
- Five major corporations—Coinbase, Mastercard, Shopify, Stripe, and Visa—serve as founding partners with equal ownership positions.
- The global stablecoin sector has surpassed $300 billion in total value, dominated by Tether’s USDT and Circle’s USDC.
- Open Standard intends to allocate the majority of company equity to partners proportional to their contribution toward OUSD expansion.
- Financial firm Mizuho reduced Circle’s stock rating in July, highlighting competitive threats from this emerging stablecoin structure.
The digital currency landscape welcomed a fresh entrant this week as Open USD made its official debut. The digital asset launched simultaneously across four blockchain platforms, accompanied by liquidity commitments surpassing the $1 billion threshold.
The initiative originates from Open Standard, a venture backed by several heavyweight industry players including Coinbase, Mastercard, Shopify, Stripe, and Visa.
These five corporations comprise the initial partner group. Every founding member possesses an identical equity portion in Open Standard at launch.
Chief Executive Zach Abrams outlined the vision driving this initiative. According to Abrams, the objective centers on transforming OUSD into practical currency for everyday transactions instead of merely serving as a speculative vehicle.
“We want to be the most useful stablecoin, the same way the U.S. dollar is useful,” Abrams stated. He noted that competing stablecoins function more like investment funds than actual spending money.
Deployment Strategy and Network Expansion
OUSD currently operates on four distinct networks: Ethereum, Solana, Coinbase’s Base platform, and Stripe’s Tempo infrastructure. The founding coalition will contribute support through various mechanisms.
Certain partners might maintain direct OUSD holdings. Additional participants could facilitate market operations or integrate the token within their proprietary ecosystems.
Collectively, these organizations have pledged more than $1 billion dedicated to establishing robust liquidity infrastructure. This commitment ensures adequate OUSD availability for widespread adoption.
Open Standard initially unveiled its stablecoin strategy in June. The announcement mentioned over 140 corporations as prospective collaborators, featuring prominent names like BlackRock, BNY, and Standard Chartered.
Currently, just five organizations have formalized investment agreements. Abrams anticipates the core founding group expanding to approximately 10 to 12 enterprises eventually.
Meanwhile, the broader ecosystem expressing interest in OUSD integration has expanded beyond 200 organizations. Recent participants include Japan’s SBI Holdings, Switzerland’s UBS banking group, and financial technology provider Jeeves.
Challenging Market Leaders Tether and Circle
Today’s stablecoin ecosystem commands a valuation exceeding $300 billion. Tether’s USDT maintains market leadership with approximately $143 billion in active circulation.
Circle’s USDC ranks second with around $74 billion outstanding. Open USD distinguishes itself through an alternative framework for ownership distribution and incentive structures.
Traditional stablecoin providers generate revenue from interest earned on reserve assets. Tether retains the overwhelming majority of these proceeds.
Circle distributes a fraction of USDC-generated income to strategic partners such as Coinbase. Open Standard aims to substantially expand this collaborative revenue model.
Abrams clarified that founding stakeholders will not receive preferential revenue allocations. Compensation will correlate directly with measurable contributions to OUSD supply expansion and transaction volume.
“The overwhelming majority of our cap table is going to be distributed back to founders and non-founders based on how they help grow the network,” Abrams explained.
Open USD eliminates transaction fees for both creation and redemption processes. Dan Romero, Tempo’s chief business officer, suggested this structure could significantly reduce expenses for enterprises conducting substantial financial transfers.
Romero forecasts approximately $1 billion worth of OUSD circulating on Tempo within several months. His projections indicate potential growth exceeding $10 billion by 2027.
Market Impact on Circle’s Valuation
Circle’s market position has experienced headwinds following the Open USD reveal. Mizuho revised its Circle price objective downward from $85 to $50 in July.
The financial institution simultaneously downgraded Circle’s investment rating from Neutral to Underperform. Analysts identified competitive pressure from Open USD as the primary catalyst.
Mizuho increased its projection for Circle’s 2027 distribution and transaction cost ratio from 64% to 73%. Simultaneously, the firm reduced adjusted earnings expectations from $1.09 billion to $699 million.
Notably, Coinbase, Visa, and Mastercard continue maintaining collaborative relationships with Circle’s USDC despite supporting OUSD. Abrams mentioned Open Standard is receiving requests for stablecoins denominated in alternative currencies, particularly from European financial institutions.
