Overview
- A coalition of more than 140 firms led by the Open Standard announced Open USD as a dollar-pegged stablecoin that promises partner governance plus free minting and redemptions for partners.
- The consortium says it will share the interest earned on the coin's cash reserves with participating firms and plans to launch later this year, though that timeline remains subject to further disclosures.
- Investors reacted sharply to the announcement, with Circle’s stock falling about 22% over the two days after the news, in part because Circle reported $2.63 billion of reserve-yield income in its 2025 revenue.
- Big names listed as participants include Visa, Mastercard, BlackRock, Alphabet and Coinbase, and Coinbase’s involvement drew attention because of its historical role in creating USDC and its existing commercial ties to Circle.
- Key unanswered questions — the blockchains Open USD will run on, exact reserve composition and custody rules, how yield will be split, and what licenses regulators will require — will determine whether the project can win users and challenge established issuers.