OpenUSD Challenges USDT, USDC, With Backing of Mastercard, Visa, and Stripe

The stablecoin market is facing a structural shift. A newly formed industry consortium called “Open Standard,” comprising over 140 companies—including financial giants such as BlackRock, Visa, Mastercard, and Stripe, as well as crypto platforms like Coinbase—has announced the launch of the stablecoin OpenUSD (ticker: OUSD). The digital payment instrument is slated to launch in the second half of 2026.

A New Token Model

OpenUSD differs fundamentally from the currently dominant models of Tether (USDT) and Circle (USDC). While established issuers retain the interest income from reserve holdings (primarily US Treasuries and cash) for themselves, OpenUSD relies on a distributed model. After deducting a management fee, earnings are distributed proportionally among the participating companies in the consortium.

This model aims to transform major payment processors from mere users of stablecoin infrastructure into co-owners and active participants. By offering full backing by liquid assets and fee-free minting and redemption, OpenUSD intends to enable seamless scaling in global payment transactions.

Market Volatility and Issuer Reactions

The announcement triggered immediate reactions in the financial markets. Circle’s shares, the issuer of the widely used USDC, came under particularly heavy pressure, seeing a price decline of up to 16%. Investors fear that the new consortium could undermine the existing dominance of individual issuers by involving central payment networks.

Leadership from the market leaders responded promptly:

• Circle: CEO Jeremy Allaire emphasized USDC’s market position as the “most trusted and institutionally ready stablecoin in the world.” He signaled openness to competition and announced plans to further expand partnerships with banks and enterprises to make them “economic stakeholders” in the USDC network.
• Tether: Paolo Ardoino, CEO of market leader Tether, commented on the situation with an ironic note on social media: “Welcome OUSD. Player 2 has entered the game.”

Expert Opinions: Overreaction or Structural Change?

Opinions among analysts remain divided. While Circle’s share price losses reflect fears of a potential threat to its business model, experts at William Blair view the reaction as “overblown.” They argue that Circle possesses deep market penetration through its immense liquidity, first-mover advantage, and existing “Circle Payments Network,” which a new entrant would find difficult to replicate. Furthermore, they skeptically described OpenUSD as a “solution searching for a problem.”

Nevertheless, the market potential remains vast. Given McKinsey’s estimates that global annual stablecoin transaction volume could reach the trillions, competition from a more decentralized, consensual model represents a serious strategic challenge for the current individual players.