Open USD Stablecoin Launches with Major Financial Backing
Open USD (OUSD), a new stablecoin backed by a consortium of financial firms, has entered the market with ambitious plans to challenge the dominance of Circle's USDC and Tether's USDT. Launched on September 30, 2026, OUSD's supply surged to $668 million by October 2, showcasing rapid adoption. The stablecoin is supported by major financial players, including Stripe, Visa, Mastercard, and Coinbase, who earn rewards and equity based on the supply and activity they generate.
OUSD differentiates itself by allowing distribution partners to collect reserve income from the portion of the supply they distribute, after a small management fee. This model incentivizes widespread adoption and collaboration among competing businesses, as each entity benefits directly from promoting OUSD within their networks. This approach contrasts with Circle's and Tether's models, where reserve income is centrally managed.
Despite Visa's significant stablecoin settlement volume exceeding $20 billion annually, the company remains neutral, supporting both OUSD and USDC. Similarly, Mastercard continues to back multiple stablecoins, including USDC on Circle's Arc blockchain. For investors in Visa or Mastercard, OUSD represents a low-risk bet on the growth of stablecoins, as these companies stand to benefit from increased stablecoin traffic regardless of the specific stablecoin used.
Circle faces the most significant threat from OUSD, as the new stablecoin could disrupt Circle's revenue model. In Q2 2026, Circle spent $410.4 million on distribution and transaction costs, highlighting the potential impact of OUSD's competitive pricing. Tether, meanwhile, operates largely outside U.S. regulations, with its regulated stablecoin, USAT, having a relatively small circulation of $183 million as of October 2.