Visa-Backed Stablecoin OUSD Challenges Circle's USDC Dominance

A new dollar-pegged stablecoin called Open USD (OUSD) has been launched by a consortium of major payment, banking, and crypto firms. The group includes Visa, Mastercard, Stripe, BlackRock, and Coinbase, among others.

The OUSD launch comes as US lawmakers advance the CLARITY Act, which would provide clearer rules for the stablecoin market. Supporters argue that this clarity will spur institutional adoption.

OUSD's defining feature is its economic structure, where nearly all revenue generated from the stablecoin's reserves, minus a small management fee, will be shared with the companies that adopt and distribute it.