Open USD Launches with Backing from Visa, Mastercard, and Stripe
Open USD goes live on four blockchains
Open Standard has officially launched Open USD (OUSD), a new digital dollar stablecoin, on Wednesday. The token is now available on Ethereum, Solana, Base, and Tempo. These networks allow users to send and receive the currency across different systems. A stablecoin is a type of cryptocurrency designed to keep a steady value, usually pegged to a real-world currency like the US dollar.
The project is backed by major financial and tech companies including Coinbase, Mastercard, Shopify, Stripe, and Visa. CEO Zach Abrams stated that the goal is to make OUSD as useful as physical cash, rather than just creating an investment fund. The launch enters a market currently dominated by Tether's USDT and Circle's USDC.
Key details about the launch
- OUSD is live on Ethereum, Solana, Base, and Tempo blockchains.
- Coinbase, Mastercard, Shopify, Stripe, and Visa are the five founding partners.
- These founders have committed over $1 billion to support OUSD liquidity.
- The partner network has grown to include more than 200 companies.
- New additions to the network include UBS, SBI Holdings, and Jeeves.
How ownership works
Open Standard plans to distribute most of its company equity over the next four to five years. Unlike traditional models where the issuer keeps profits, this project rewards partners based on how much they help grow the supply and transaction activity of OUSD. Founding partners received equal initial stakes, but future equity will depend on performance.
Zach Abrams explained that the company is not run by a committee of hundreds. Instead, a small group of founders manages decisions while a wider network of partners earns rewards for their contributions. This includes generating supply and moving tokens through transactions.
Market context and competition
The stablecoin market is valued at over $300 billion. Currently, Tether controls about $143 billion in circulation, while Circle holds roughly $74 billion. Open Standard aims to compete by focusing on banking, cross-border payments, and card settlements. The model eliminates minting and burning fees, which could save money for businesses moving large amounts of funds.
Dan Romero, chief business officer at Tempo, suggested that OUSD could reach $1 billion on his platform within months. He projected growth to over $10 billion in 2027 and potentially exceeding $100 billion in the following years. However, these figures represent projections, not confirmed outcomes.
Future plans and expansion
While OUSD is currently a dollar-pegged token, the team sees demand for stablecoins in other currencies. Abrams noted that his previous company, Bridge, issued a euro-backed token for Revolut. He stated that future currency options will be driven by network demand. Looking ahead a decade, the goal is for Open USD rails to handle hundreds of trillions of dollars annually.
What remains uncertain
Specific thresholds required for partners to earn equity rewards were not disclosed. The exact size of the initial investment and equity stake for each of the five founding companies was also kept private. Additionally, while the founding group may expand to 10 or 12 companies, no final list of additional investors has been announced yet.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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