Visa and Over 100 Institutions Jointly Launch Stablecoin Open USD
N.R. Finch
Visa, Stripe, BlackRock and over 100 financial institutions announced a joint venture to issue a dollar-pegged stablecoin called Open USD, using a reserve-yield sharing model that directly challenges Tether and Circle's market dominance.
What exactly is this?
Over 100 institutions have formed a joint venture called Open Standard to launch a dollar-pegged stablecoin, Open USD, later this year.
Members span payment networks, banks, crypto platforms, and fintechs — Visa, Stripe, BNY, BlackRock, Coinbase, and an Alphabet unit are all in.
This means → this is not one company issuing a coin. It is an industry-wide alliance building shared infrastructure — the largest joint stablecoin effort ever attempted.
Why are so many heavyweights signing up?
The core draw is the revenue-sharing model: reserve yield — interest earned on the dollar assets backing the stablecoin — is split among all partners after a small management fee.
In plain terms = today, Tether and Circle keep all the reserve interest themselves. Open USD shares that money with every institution that uses it — help distribute, get paid.
This reflects a deeper shift: stablecoin competition has moved from "who launches first" to "whose incentive structure can lock in the most allies."
Who is running it?
The interim CEO is Zach Abrams, co-founder of Bridge, Stripe's stablecoin infrastructure arm. He said businesses need an "open, low-cost, high-throughput" tool for large-scale adoption.
BNY's chief product officer called "neutral governance plus shared economics" the key combination to unlock digital assets' next phase.
Mastercard's chief product officer compared the model to shared infrastructure in the internet and mobile networks — build the public pipes first, then each player runs its own business on top.
Won't joining conflict with members' own stablecoin plans?
Mastercard already acquired stablecoin infrastructure startup BVNK this year. Klarna launched its own stablecoin last November. Stripe is valued at roughly $159 billion and has long invested heavily in stablecoins.
This means → these firms are not abandoning proprietary efforts. They are betting on shared industry infrastructure at the same time — self-build and alliance participation are not mutually exclusive.
Can it actually dent Tether and Circle's dominance?
USDT and USDC still command the vast majority of stablecoin trading volume. PayPal's PYUSD has gained limited share since its 2023 launch.
Tether, Circle, and PayPal have all stayed out of Open Standard.
In plain terms = the alliance roster is impressive, but converting "many institutions" into "many users" — real network effects — is the make-or-break test for Open USD's "mainstream" ambitions.
Content is for reference only, not financial advice.