The project, backed by Visa, MasterCard and several crypto companies, could be in a position to challenge Tether’s USDT and Circle’s USDC, which are currently the two largest stablecoins by market capitalization.
More than 140 companies have signed up to the US dollar-pegged stablecoin project that allows them to “get all the earnings” from their reserves.
In a notice Tuesday, Open Standard said it is launching the Open USD (OUSD) stablecoin, a U.S. dollar-pegged coin backed by financial companies including Visa and MasterCard, as well as crypto companies Coinbase, Ripple, OKEx and Bybit. The project will allow businesses to mine OUSD “at no cost and with no artificial limits on volume” and retain earnings from the coin’s reserves.
“When Visa, Stripe, MasterCard, Coinbase, and Google coordinate on a new stablecoin, the signal is unmistakable,” said Will Harborne, co-founder and CEO of Rhino.fi. “OpenUSD is the first launch with a real chance to win share from USDT and USDC, as the reserved revenue flows back to everyone who holds it. But that same incentive drives massive fragmentation.”
Source: open standard
Because it is backed by so many high profile companies, the coin may be in a position to challenge Tether’s USDT and Circle’s USDC, which are currently the two largest stablecoins by market capitalization. Circle Internet Group’s share price fell more than 16% to $63.63 on Tuesday.
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According to Open Standard, OUSD will launch “later this year.” According to DefiLlama, the current size of the stablecoin market is over $312 billion and is projected to reach $4 trillion by 2030.
In a Tuesday X-post following the announcement, Circle CEO Jeremy Allaire said the company welcomes “continued innovation and competition in this space,” adding that it will soon expand support for US dollar-pegged and non-US dollar stablecoins.
“[We] “I look forward to continuing to focus on building the best-in-class stablecoin infrastructure and driving even more customer and partner success,” Allaire said.
Stablecoin launch comes under industry-friendly US legislation
US President Donald Trump last year signed a bill to establish a regulatory framework for payments stablecoins, called the Genius Act. Many experts expect the law, pending federal authorities to finalize rules for implementation, could pave the way for the stablecoin market to grow as companies could potentially begin issuing and accepting digital assets more easily.
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