A coalition of more than 140 of the world’s largest financial institutions, payment companies, banks, technology firms, and crypto companies has announced the launch of Open USD (OUSD), a new U.S. dollar-backed stablecoin designed to reshape the economics of digital payments and challenge established players like USDT and USDC.
The initiative is being developed under Open Standard, an independent consortium whose founding partners include Visa, Mastercard, BlackRock, Coinbase, American Express, Stripe, Google, Ripple, BNY, Standard Chartered, Shopify, IBM, Solana Labs, and many others. Rather than being controlled by a single company, Open USD will be governed collectively by participating members.
Unlike traditional stablecoins, where the issuing company keeps nearly all of the interest earned on reserve assets, OUSD introduces a revenue-sharing model. Most of the yield generated by the stablecoin’s reserves will be distributed back to businesses that adopt and integrate the token, with only a small management fee retained by the consortium. Supporters believe this creates a stronger incentive for merchants, payment processors, banks, and fintech companies to use OUSD.
The consortium also says businesses will be able to mint and redeem OUSD without volume restrictions or issuance fees, making the stablecoin more attractive for large-scale commercial payments and treasury operations. The goal is to create an open, interoperable infrastructure that businesses can use globally instead of relying on proprietary stablecoin issuers.
Industry observers view Open USD as one of the biggest challenges yet to USDC, issued by Circle, and USDT, issued by Tether. Investors reacted immediately following the announcement, with Circle’s stock falling sharply amid concerns that OUSD’s revenue-sharing approach could pressure the economics of existing stablecoin issuers.
The announcement follows a period of increasing regulatory clarity for stablecoins in the United States, which has encouraged major financial institutions to accelerate their digital asset strategies. Open Standard says Open USD is intended to support broader adoption of blockchain-based payments by combining traditional finance, payment networks, and crypto infrastructure under a shared governance model.
If widely adopted, OUSD could significantly alter the competitive landscape for digital dollars by giving participating companies a direct financial stake in the stablecoin network instead of simply acting as users. The consortium plans to launch Open USD later this year across supported blockchain networks, positioning it as a global payment and settlement asset for businesses.
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