Visa Backs Open USD Stablecoin Consortium with Key Integration

Visa's CEO Ryan McInerney said that the company won't pick winners in the stablecoin market, but the firm has taken a significant position in Open USD, a consortium of over 140 businesses including Mastercard, American Express, and Stripe.

Open USD is unique in that it returns nearly all reserve earnings to its member businesses, unlike other issuers like USDT and USDC, which keep the revenue for themselves.

Visa's integration with Open USD on its new institutional stablecoin platform VSP gives the consortium a significant advantage, as it allows clients to mint, redeem, hold, and transfer supported stablecoins using passkeys and dual approval.

Circle shares fell by up to 17% following the announcement, while Coinbase joined the consortium despite earning $908 million in USDC revenue sharing from Circle in 2024.