Visa, Mastercard, Stripe Back New Stablecoin Open USD With $1 Billion in Liquidity
A new stablecoin called Open USD has been launched with $1 billion in liquidity committed by major payment companies including Visa, Mastercard, Stripe, and Coinbase.
The Open USD stablecoin is designed to maintain a value of $1 and allows users to easily convert it into dollars. The company behind OUSD, Open Standard, reports that its partner network has grown to over 200 companies, up from 140 in June.
What sets OUSD apart is its business model, which shares most of the interest income from its reserves with its partners. This turns the companies distributing OUSD into stakeholders and incentivizes them to favor it over other stablecoins like USDC and Tether.
Tether's USDT has a market cap of around $184 billion, while USDC stands at about $74 billion, and Ripple's RLUSD has reached approximately $2.5 billion. OUSD is smaller than established players but is starting within the financial systems that handle payments directly, leveraging card networks and Shopify stores.