Open USD stablecoin debuts with Visa, Mastercard, and BlackRock backing

A new stablecoin, Open USD, is set to launch later this year with support from over 140 businesses. Major firms like Visa, Mastercard, and BlackRock are backing the project. It introduces a different approach to handling reserve income compared to existing stablecoins. Open USD plans to share most of its reserve income with network participants rather than keeping it. This contrasts with USDC, where Circle and Coinbase currently earn from reserve assets. USDC remains a dominant stablecoin, with around $73.6 billion in circulation.

The announcement of Open USD caused Circle’s stock to fall by over 16%. The drop reflects broader concerns, as both companies face similar challenges tied to USDC-related revenue. Open USD also offers fee-free minting and redemption, setting it apart from competitors.

Regulatory efforts are also advancing. The CLARITY Act and GENIUS Act aim to establish rules for stablecoin reserves and licensing, shaping the future of such digital currencies. Open USD’s launch could reshape the stablecoin market by redistributing reserve income. Its fee-free model and strong backers may attract users and businesses. Meanwhile, regulatory developments will influence how stablecoins operate in the coming years.