Open USD: A New Player in the Stablecoin Market

Launched on September 30, 2026, Open USD (OUSD) has quickly made waves in the stablecoin arena, amassing a supply of $668 million within just a few days. This innovative stablecoin is backed by a consortium of major financial firms, positioning it to directly compete with established leaders like USDC from Circle Internet Group and Tether’s USDT.

Backers and Their Motivation

OUSD’s backers include industry giants such as Stripe, Visa, Mastercard, and Coinbase. These companies, which already profit from existing stablecoins, are investing in OUSD primarily for participation in its revenue and equity linked to its usage.

A Unique Revenue Model

The structure of Open USD offers a distinct revenue-sharing model that may attract a broader distribution. Unlike traditional stablecoins, which typically centralize reserve revenue, OUSD allows its distribution partners to share in the income generated from reserves. This innovative design encourages participants to maximize their distribution efforts, making it attractive for companies wishing to remain competitive in an evolving market.

How It Works

Stablecoin issuers generally earn interest on reserves comprising primarily cash equivalents and Treasury holdings. For instance:

• Circle shares some of its reserve income with USDC distributors like Coinbase.
• Tether often retains most of its reserve income, relying on a user base rooted in the cryptocurrency sector.

OUSD diverts from this norm by allowing distribution partners to earn from the reserves they help distribute, which effectively aligns their profits with the volume of stablecoin transactions they generate.

Visa’s Standpoint on Stablecoins

Visa reported on September 8 that its stablecoin settlement volume had surpassed an impressive $20 billion on an annualized basis, marking a 15-fold increase compared to the previous year. While Visa allows businesses to mint OUSD through its and Mastercard’s platforms, the companies do not favor one stablecoin over another, as they also run transaction validators for Circle’s USDC on its new Arc blockchain.

Potential Risks for Competitors

Circle may face significant pressure with the emergence of OUSD, as the latter provides distributors an alternative in negotiations, potentially impacting Circle’s distribution costs. For example, in the second quarter of 2026, Circle incurred $410.4 million in distribution costs—58.5% of its total revenue.

Conversely, Tether appears to have a buffer due to its operations being outside of U.S. regulations. While OUSD’s growth could affect Tether’s market presence, its direct exposure remains minimal, given the limited circulation of its U.S.-regulated stablecoin, USAT.

Conclusion

The launch of Open USD introduces a fresh competitive element to the stablecoin ecosystem. Its unique model and strong backing may influence existing players like Circle and Tether, prompting a reevaluation of their strategic positions in the market. Both consumers and investors should keep an eye on how this newly introduced stablecoin develops in the coming months.