Open Standard Launches OUSD Stablecoin with Major Backing, Challenging Tether and Circle
Quick Look
- Open Standard has launched the OUSD stablecoin, backed by Visa, Mastercard, Coinbase, and others.
- OUSD aims to challenge Tether's USDT and Circle's USDC by allowing holders to receive earnings from its reserves.
- The stablecoin market is projected to reach $4 trillion by 2030.
AI-generated summary
Why It Matters
Open Standard has launched the OUSD stablecoin, a US dollar-pegged coin supported by major financial and crypto companies. It allows businesses to mint OUSD at no cost and retain earnings from its reserves.
More than 140 companies have signed onto a US dollar-pegged stablecoin project that allows them to “receive all of the earnings” from its reserves.
In a Tuesday notice, Open Standard said it was launching the Open USD (OUSD) stablecoin, a US dollar-pegged coin supported by financial companies including Visa and Mastercard, as well as crypto companies Coinbase, Ripple, OKX and Bybit. The project will allow businesses to mint OUSD “at no cost and with no artificial limits on volume,” and keep earnings from the coin’s reserves.
“When Visa, Stripe, Mastercard, Coinbase and Google coordinate on a new stablecoin, the signal is unmistakable,” said Rhino.fi co-founder and CEO Will Harborne. “Open USD is the first launch with a real chance to win share from USDT and USDC, because reserve revenue flows back to everyone who holds it. But that same incentive is what drives fragmentation at scale.”
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. The share price of Circle Internet Group dropped by more than 16% on Tuesday to $63.63.
Related: Business use of stablecoins set for growth surge: Cybrid report
According to Open Standard, OUSD will launch “later this year.” The current size of the stablecoin market, according to DefiLlama, is more than $312 billion and projected to reach up to $4 trillion by 2030.
In a Tuesday X post following the announcement, Circle CEO Jeremy Allaire said that 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.
“[We] look forward to remaining laser-focused on building the best stablecoin infrastructure possible and driving more customer and partner success,” said Allaire.
Stablecoin launch comes under US law favorable to the industry
US President Donald Trump signed a bill to establish a regulatory framework for payment stablecoins, called the GENIUS Act, into law last year. Many experts expect that the legislation, awaiting federal authorities finalizing regulations for implementation, could pave the way for the stablecoin market to grow as companies potentially begin issuing and accepting digital assets more easily.
What to Watch
AI outlook — possibilities, not facts
OUSD will gain significant market share from USDT and USDC.
Possible · Medium term
Open Questions
- What are the specific regulatory implications of OUSD's reserve earnings model?
- How will OUSD's reserve composition be audited and verified?
- What is the exact launch date for OUSD?
