Open USD (OUSD), a new stablecoin initiative, has officially launched across multiple blockchain networks with backing from industry leaders Coinbase, Mastercard, Shopify, Stripe, and Visa. The five companies have committed more than $1 billion in liquidity to support OUSD across Ethereum, Solana, Base, and Tempo, aiming for immediate integration and accessibility within the digital currency ecosystem.
Major partnerships and launch details
Open Standard is the company behind OUSD, bringing together a coalition of major financial and technology corporations as founding partners. Coinbase, a leading cryptocurrency exchange; Mastercard and Visa, two of the largest global payment processors; Shopify, a prominent e-commerce platform; and Stripe, a major payment technology company, each hold equal founding equity in Open Standard at launch.
Zach Abrams, CEO of Open Standard, shared the project’s central goal: to create a stablecoin that functions as a practical form of currency for everyday use, rather than serving primarily as an investment instrument.
“We want to be the most useful stablecoin, the same way the U.S. dollar is useful,” said Abrams, highlighting that many current stablecoins are more suited to investment than spending.
OUSD operates simultaneously across Ethereum, Solana, Coinbase’s Base, and Stripe’s Tempo network. Founding partners provide active support via direct holdings, integration of OUSD into their own systems, or facilitating liquidity.
The initial funding package creates an extensive liquidity pool, intended to ensure OUSD’s stability and usability across various platforms from day one.
Equity model and network expansion
Open Standard has announced plans to allocate most company equity to partners based on their contribution to OUSD’s growth. Over 140 companies, including BlackRock, BNY, and Standard Chartered, were named as potential collaborators when Open Standard revealed its stablecoin approach in June. However, only the five founding partners currently hold formal investment stakes. Abrams expects the founding group to eventually grow to up to 12 core organizations.
Interest in joining or integrating with the OUSD ecosystem continues to rise, with more than 200 organizations expressing engagement. Notable recent participants include SBI Holdings from Japan, UBS from Switzerland, and technology firm Jeeves.
Mini dictionary: Open Standard, established as a consortium by major payment and tech companies, is structured to oversee and develop new digital asset standards and products, starting with OUSD. Its focus lies in broad industry collaboration, shared ownership, and driving utility-based stablecoin adoption.
Competing with Tether and Circle
Within the rapidly growing stablecoin sector, dominated by Tether’s USDT and Circle’s USDC, OUSD offers a different approach to ownership and incentives. USDT leads the market with about $143 billion in circulation. USDC follows with a supply of approximately $74 billion.
| Stablecoin | Circulating Supply | Ownership Model | Key Partners |
|---|---|---|---|
| USDT (Tether) | $143 billion | Controlled by Tether | Tether Limited |
| USDC (Circle) | $74 billion | Circle & strategic partners | Circle, Coinbase |
| OUSD (Open Standard) | N/A (newly launched) | Consortium equity among partners | Coinbase, Mastercard, Shopify, Stripe, Visa |
Traditional stablecoin issuers, like Tether, collect the majority of interest income on reserve holdings. Circle shares a portion with partners such as Coinbase. In contrast, Open Standard plans to reward both founders and other contributors based on their measurable role in driving OUSD adoption and usage, rather than simply providing preferential allocations.
“The overwhelming majority of our cap table is going to be distributed back to founders and non-founders based on how they help grow the network,” Abrams said, outlining the structure’s incentive model.
OUSD does not impose fees on the creation or redemption of its tokens. Dan Romero, chief business officer at Tempo—a payments infrastructure network collaborating on the launch—indicated that this could lower operating costs for businesses processing large-scale transactions. Romero projected that around $1 billion worth of OUSD could circulate on the Tempo network within months, and suggested that OUSD supply could surpass $10 billion by 2027.
Mini dictionary: Tempo is a payment infrastructure platform developed by Stripe. It enables seamless integration of digital currencies and provides support for instant transfers and high-volume enterprise transactions.
Impact on stablecoin competitors
The launch of OUSD has drawn attention from market analysts and triggered a response in the competitive landscape. In July, financial services company Mizuho downgraded its stock rating on Circle from Neutral to Underperform, slashing its price target from $85 to $50.
Mizuho analysts attributed this adjustment to rising competition from the OUSD model, raising Circle’s projected 2027 distribution and transaction cost ratio from 64% to 73% and reducing expected adjusted earnings from $1.09 billion to $699 million.
Despite supportive relationships between Open Standard’s founding partners and Circle, demand for stablecoins denominated in other currencies—especially from European financial institutions—has also increased, according to Abrams. This signals potential future diversification in the stablecoin sector.
