A consortium of over 140 companies, including Stripe, Coinbase, Mastercard, Visa, and BlackRock, has launched Open USD, a new stablecoin by Open Standard. Unlike traditional stablecoins, Open USD allows partners to mint and redeem tokens without fees and share in the reserve income generated from U.S. Treasuries, challenging the revenue model of incumbents like Circle's USDC. Circle's shares fell more than 17% to a four-month low following the announcement. The stablecoin market, currently over $300 billion, is projected to grow to $4 trillion by 2030, attracting major financial institutions. Open USD aims to democratize stablecoin infrastructure by distributing governance among members and returning yield to partners, similar to the Global Dollar Network. Circle CEO Jeremy Allaire welcomed the competition, stating his focus on building the best infrastructure. The project highlights an industry shift from token issuance to infrastructure control.

Key facts

• Open USD launched by 140+ companies including Stripe, Coinbase, Mastercard, Visa, BlackRock.
• Open USD lets partners keep reserve earnings from U.S. Treasuries, challenging Circle's revenue model.
• Circle shares fell over 17% to a four-month low after the announcement.
• Stablecoin market exceeds $300 billion, projected to reach $4 trillion by 2030.
• Governance of Open USD is shared among members rather than controlled by a single issuer.

KeyAudit data perspective