Open USD stablecoin launches with 140+ companies, challenges USDT and USDC
In brief
- Open USD stablecoin backed by 140+ companies including Visa, Mastercard, Coinbase, Ripple, OKX and Bybit.
- Businesses can mint Open USD at no cost with unlimited volume and retain earnings from reserves.
- Launch scheduled for later this year, competing against USDT and USDC market dominance.
Reserve Revenue Model Sets Open USD Apart
The Open USD model differs from existing stablecoins in a crucial way: businesses mint at no cost with no artificial volume limits and keep earnings generated from reserves. That's a significant incentive structure. Most stablecoins today funnel reserve revenue to the issuer alone.
Will Harborne, Rhino.fi co-founder and CEO, framed the competitive advantage plainly: "When Visa, Stripe, Mastercard, Coinbase and Google coordinate on a new stablecoin, the signal is unmistakable. Open USD is the first launch with a real chance to win share from USDT and USDC, because reserve revenue flows back to everyone who holds it."
Market Timing and Regulatory Backdrop
The stablecoin market is currently worth more than $312 billion and projected to reach up to $4 trillion by 2030. That scale explains the rush of institutional interest. The timing also coincides with a new regulatory environment: President Donald Trump signed the GENIUS Act into law to establish a framework for payment stablecoins, removing some legal uncertainty that had previously constrained stablecoin innovation.
Incumbent Response
Tether's USDT and Circle's USDC remain the two largest stablecoins by market capitalization. The Open USD announcement hit Circle hard: the company's share price dropped more than 16% to $63.63 on Tuesday following the announcement.
Circle CEO Jeremy Allaire responded with measured language, saying the company welcomed "continued innovation and competition in the stablecoin space." It's a diplomatic stance, but the market reaction speaks louder than statements.
