Visa and Stripe Take Control of Stablecoin Payments with Open USD

Visa and Stripe have jointly developed their own stablecoin, Open USD, rather than partnering with existing issuers like Circle. This move marks a significant shift in the industry, as traditional finance companies aim to take control of the payment infrastructure.

The stablecoin will be issued by Open Standard, a new entity backed by over 140 companies, including Visa, Stripe, Mastercard, and Coinbase. The coin is designed to be more equitable than existing stablecoins, with nearly all reserve yield going to the partners who move the coin around.

Open USD will run on multiple blockchain platforms, including Solana, Stellar, Base, and Polygon, and is expected to launch later this year. However, key details such as the reserve composition and custodian remain unconfirmed.

In contrast to Open USD, Citi and Coinbase have partnered to integrate existing stablecoins into bank rails and merchant checkout, a fundamentally different approach that highlights the evolving landscape of traditional finance in crypto.