A coalition of more than 140 companies has unveiled plans for a new US dollar-backed stablecoin designed to reshape how reserve profits are distributed.
Unlike traditional stablecoins, the new digital asset will allow participating businesses to retain the income generated from the reserves backing the token, a model its supporters believe could transform the market.
The project, known as Open USD (OUSD), has attracted backing from several of the world’s biggest financial and cryptocurrency firms, positioning it as one of the most ambitious stablecoin launches in recent years.
Financial Giants and Crypto Leaders Back OUSD
The initiative, announced by Open Standard on Tuesday, brings together an impressive list of supporters spanning both traditional finance and digital assets.
Among the companies involved are Visa, Mastercard, Coinbase, Ripple, OKX and Bybit.
Under the proposed system, businesses will be able to mint OUSD without paying issuance fees or facing volume restrictions.
More notably, organizations using the stablecoin will receive the returns generated from the reserves that support the token, rather than those earnings being retained by the issuer.
Developers believe this structure creates a stronger incentive for businesses to adopt the stablecoin while encouraging broader participation across the payments ecosystem.
New Revenue Model Could Shake Up the Stablecoin Market
Industry observers believe OUSD’s reserve-sharing approach could significantly disrupt the established stablecoin landscape.
Rhino.fi co-founder and CEO Will Harborne described the collaboration among major companies as a strong signal that the industry is entering a new phase of competition.
According to Harborne, the combined support of companies such as Visa, Mastercard, Coinbase, Stripe and Google gives Open USD one of the strongest opportunities yet to compete with the market’s dominant stablecoins.
He added, however, that distributing reserve earnings to holders could also encourage the creation of multiple competing stablecoins over time.
Challenge Looms for USDT and USDC
The launch places Open USD in direct competition with the industry’s largest players—Tether’s USDT and Circle’s USDC—which together account for the majority of the global stablecoin market.
Investor reaction appeared swift. Shares of Circle Internet Group fell more than 16% on Tuesday, closing at $63.63 after the announcement, reflecting growing attention on the competitive implications of the new project.
Launch Planned Later This Year
Open Standard says OUSD is scheduled to debut later this year.
The stablecoin sector has expanded rapidly in recent years.
Data from DeFiLlama estimates the market currently exceeds $312 billion in value, while some industry forecasts suggest it could grow to as much as $4 trillion by 2030 as institutional and commercial adoption accelerates.
Circle Responds by Emphasizing Innovation
Following the announcement, Circle CEO Jeremy Allaire welcomed the emergence of additional competition in the stablecoin sector.
In a post on X, Allaire said Circle supports continued innovation and indicated the company intends to expand its offerings for both US dollar-backed and non-dollar stablecoins.
He also stressed that Circle remains committed to strengthening its stablecoin infrastructure and helping customers and partners build on its platform despite the arrival of new competitors.
Regulatory Environment Continues to Support Stablecoin Growth
The announcement comes as the United States continues implementing legislation designed to establish clearer rules for payment stablecoins.
Last year, President Donald Trump signed the GENIUS Act into law, creating a regulatory framework for the sector.
Although federal agencies are still finalizing implementation rules, many analysts believe the legislation will make it easier for businesses to issue, integrate and accept stablecoins, potentially accelerating adoption across financial services and global commerce.
With regulatory clarity improving and major financial institutions increasingly embracing blockchain-based payments, Open USD enters the market at a time when competition in the stablecoin industry is expected to intensify significantly.
