Open USD Takes on Tether and Circle with Novel Revenue-Sharing Model
Open USD, also known as OUSD, is the latest stablecoin to enter the market, backed by some of the biggest names in payments and crypto. The stablecoin went live on September 30th on Ethereum, Solana, Base, and Tempo, and is designed to maintain a one-to-one value with the US dollar.
OUSD's reserves are held with institutions including BlackRock, BNY, and Lead Bank, and its broader network has grown to more than 200 participants. The five founding companies, Coinbase, Mastercard, Shopify, Stripe, and Visa, have committed over $1 billion in near-term liquidity to help OUSD get started.
What sets OUSD apart from other stablecoins is its unique revenue-sharing model. Companies that help the stablecoin grow can earn a bigger share of the rewards generated by its reserves. This means that exchanges, wallets, payment companies, fintechs, and merchants will have a financial incentive to integrate and promote OUSD.
However, Tether and Circle already dominate the market for digital dollars, and it's unclear whether OUSD can break through. While OUSD has some powerful connections in its favor, including Visa and Mastercard's merchant networks, it still faces significant competition from established players.