OUSD Launch Sparks Stablecoin Market Shift
The recent announcement of Open USD (OUSD), a dollar stablecoin governed by Open Standard, has sent shockwaves through the crypto market. Over 140 firms, including Visa, Mastercard, Stripe, BlackRock, Google, BNY, and Coinbase, have partnered with Open Standard to launch OUSD in the second half of 2026. The consortium behind OUSD is not competing on demand, but rather on who keeps the reserve income.
The economics of stablecoins are at play here. Circle's Q1 2026 revenue was largely driven by reserve income, which accounted for 94% of its total revenue. Circle pays Coinbase $907.9M in 2024 under an agreement that closes this month, with renewal automatic for a further three years if performance thresholds are met and the parties cannot agree on modifications.
The introduction of OUSD could disrupt the stablecoin market dynamics. With no minting fees and no volume caps, OUSD would pass reserve income to distribution partners, net of a management fee. This could make OUSD the sector default, taking what Circle pays Coinbase as a negotiated cost.