Visa, BlackRock and Coinbase have joined more than 140 companies backing Open Standard, a new stablecoin initiative that plans to launch a U.S. dollar-pegged token called Open USD later this year.
The project is designed to make stablecoins easier for large businesses to use at scale by reducing issuance costs, improving accessibility and aligning economics with participating companies. Open Standard said OUSD will allow businesses to mint and redeem tokens without fees or volume restrictions, a structure meant to remove one of the frictions that has limited enterprise stablecoin adoption.
The consortium includes major payments, crypto, technology and financial firms. Reuters reported that Visa, Mastercard and Coinbase are part of the initiative, while other market coverage said BlackRock, Stripe, Google, BNY and more than 140 partners are also involved. The token is expected to operate across multiple networks, including Solana, Coinbase’s Base and other blockchains.
Open Standard founding CEO Zach Abrams said existing stablecoins have strengths, but businesses need a system that is open, low-cost, high-throughput, widely accessible and aligned with their interests. The project’s model is built around shared reserve economics, with reserve earnings distributed among consortium participants after a management fee.
The announcement immediately affected public crypto equities. Circle, the issuer of USDC, fell sharply after the news because investors viewed OUSD as a potential threat to one of the most profitable stablecoin business models in the market. Coinbase also traded lower despite being part of the consortium, reflecting uncertainty over how a new shared stablecoin could affect its existing economics with USDC.
Stablecoin Economics Face New Pressure
OUSD’s most important feature is not only that it is another dollar token, but that it changes the economic model around stablecoin issuance. USDC and USDT have historically generated significant revenue from interest on reserves backing tokens in circulation. That model has become more valuable as stablecoin supply has grown and interest rates remained elevated.
Open Standard is trying to make those economics more collaborative. By allowing partners to share in reserve earnings, the project could give payments companies, fintechs, exchanges and merchants a stronger incentive to integrate OUSD rather than simply distribute another issuer’s token.
That is a direct challenge to the dominant stablecoin structure. Circle benefits from USDC issuance and reserve income, while Coinbase earns revenue through its partnership with Circle and USDC distribution. Tether remains the global market leader, especially in offshore crypto trading. OUSD is aiming at a different wedge: enterprise-scale payments and settlement, where large platforms may prefer a neutral standard with shared upside.
If successful, the model could reduce dependence on single-issuer stablecoins and make stablecoin infrastructure look more like a payments network than a crypto trading product.
Regulation Enables New Competition
The timing reflects a changing U.S. regulatory environment. Stablecoins gained greater legitimacy after the GENIUS Act created a federal framework for dollar-pegged tokens, reserve backing and issuer oversight. That clarity has encouraged banks, payment networks, fintechs and asset managers to explore tokenized dollars more aggressively.
For Visa and Mastercard, OUSD could support faster settlement and programmable payments without fully surrendering economics to existing crypto issuers. For BlackRock, the project fits a broader move into tokenized cash, reserves and on-chain financial infrastructure. For Coinbase, participation may help defend its role in stablecoin distribution even as USDC faces new competition.
The market impact could be significant if OUSD reaches scale. Businesses may be more willing to adopt stablecoins when minting, redemption and distribution are cheaper and when reserve economics are shared across the network. That could expand stablecoin use beyond crypto trading into commerce, treasury operations, remittances and cross-border settlement.
Still, execution risks remain. OUSD must prove reserve transparency, regulatory compliance, liquidity, redemption reliability and cross-chain security. It must also persuade partners to integrate the token deeply rather than merely endorse the initiative.
The broader message is that stablecoins are entering a new competitive phase. The market is no longer only about which issuer can grow supply fastest. It is increasingly about which network can align banks, payment companies, exchanges, merchants and asset managers around a shared standard for digital dollars.
