Visa-Backed Open USD Stablecoin Challenges Tether, USDC, and RLUSD

The Open USD stablecoin has gained significant backing from major players in the payment industry, with Visa, Mastercard, Stripe, and Coinbase collectively committing $1 billion in liquidity to the new stablecoin.

This is a significant departure from the traditional business model of stablecoins, where issuers keep most of the interest income from their reserves. Open USD, on the other hand, shares most of that revenue with its partners, turning them into stakeholders.

While Open USD is still a relatively small player in the market, with a market cap of $0, its strong initial interest and backing from major payment companies make it a significant contender in the stablecoin market.

USDC faces the biggest risk from Open USD, as Circle splits reserve income with its distributors and Coinbase benefits from USDC revenue and is also an OUSD partner, giving it a strong incentive to promote Open USD.

RLUSD, on the other hand, faces a different set of challenges, as Ripple sells RLUSD to banks and payment institutions for cross-border transactions, which are also the customers that OUSD's partners are already accommodating.