Visa and Mastercard Back New Stablecoin with $1 Billion in Liquidity

A new stablecoin, Open USD (OUSD), has been launched with significant backing from major payment companies. Visa, Mastercard, Stripe, Coinbase, and Shopify have collectively committed $1 billion in liquidity to OUSD, which was launched on September 30, 2026. This is a substantial amount, but still dwarfed by the market cap of established players like Tether's USDT, which has around $184 billion in circulation.

OUSD's business model stands out from its competitors. Unlike Tether and Circle, which issue USDC and keep most of the interest income from their reserves, OUSD shares most of that revenue with its partners. These partners receive earnings based on their participation, and they can create and redeem tokens at $1 without any fees.

This profit-sharing structure could incentivize Coinbase, Visa, and other partners to favor OUSD over USDC, potentially pulling more business away from Circle. OUSD's impact will be felt if it is used for settlements by default, or if its supply grows into the tens of billions by mid-2027. If this happens, the competitive landscape for all three established stablecoins could shift dramatically.

While OUSD is primarily a concern for USDC, it also challenges RLUSD's market appeal. Ripple's RLUSD primarily relates to Ripple's business developments and does not directly influence XRP's value.

OUSD's partner network has grown to over 200 companies, up from 140 in June, and its reserve management is handled by BlackRock, Lead Bank, and BNY Mellon.