Stripe-Backed OpenUSD Challenges Stablecoin Duopoly with Launch

OpenUSD (OUSD) has joined the stablecoin market, going live on four public blockchains - Ethereum, Solana, Base, and Tempo - on September 30th. The token is fully backed by the US dollar and is supported by a number of major players in the industry, including Coinbase, Mastercard, and Stripe.

The OUSD stablecoin will be used to challenge the dominance of Tether's USDT and Circle's USDC, which currently hold a duopoly in the market. According to Patrick Collison, CEO of Stripe, the partners involved in the project will share the yield generated by the token.

Circle's CEO, Jeremy Allaire, downplayed OUSD's competitiveness, citing the network effects that have built up around USDC. However, Jorn Lambert, Chief Product Officer at Mastercard, took a more neutral stance, stating that this is not a 'winner-takes-all' scenario and that businesses will benefit from having multiple options available.

The launch of OUSD marks an important step towards a more connected and interoperable multi-money future, according to Lambert. Visa has also adopted a similar approach, focusing on providing flexible options for users rather than promoting a single form of money.