More than 140 companies, including Coinbase, Visa, Mastercard, Stripe, and BlackRock, have unveiled Open USD (OUSD), a new stablecoin operated by an independent entity called Open Standard. The stablecoin promises free, uncapped minting and redemption, with reserve earnings shared among partner businesses minus a small management fee. Governance is handled by a board of partner companies rather than a single entity, aiming to create a neutral, shared digital payments infrastructure. The announcement sent Circle's stock price plunging nearly 16% on the day, reflecting market concerns about competition to USDC. Open USD addresses industry complaints about high fees and issuer-controlled reserves, offering a more open and collaborative model. The stablecoin is expected to launch later this year, with backers spanning payments giants, banks, tech firms, and crypto companies. Industry experts suggest the stablecoin market could reach $1.5 trillion by 2030.

Key facts

• Over 140 firms including Coinbase, Visa, and BlackRock launch Open USD stablecoin.
• Open USD offers free, uncapped minting and redemption with shared reserve earnings.
• Governance by a board of partner companies, not a single issuer.
• Circle's stock drops nearly 16% on announcement day.
• Expected to launch later this year; market may reach $1.5 trillion by 2030.

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