OpenStandard, a global stablecoin consortium of over 140 companies, announced the launch of OpenUSD (OUSD), a dollar-pegged stablecoin, on April 30 (local time), with plans to release it within this year. The consortium model challenges the existing duopoly of Tether's USDT and Circle's USDC by introducing a revenue-sharing structure where reserve asset income is distributed to partner companies after operating costs, contrasting with the issuer-centric profit model of USDT and USDC. Participating companies include global financial and payment giants Visa, Mastercard, Stripe, and BlackRock, as well as tech firms Google, IBM, Coinbase, and Solana, while 13 Korean companies — Samsung Electronics, Dunamu, Shinhan Financial Group, Kakao Bank, K Bank, Hyundai Card, KB Kookmin Card, BC Card, Hana Card, Samsung Card, Woori Card, NH Nonghyup Card, and Hanwha Life — have expressed intent to join.
OpenUSD Introduces Consortium Model and Revenue-Sharing Structure
OpenUSD differs from USDT and USDC in governance, economic structure, and ecosystem design. While USDT and USDC are centralized models operated by Tether and Circle respectively, OpenUSD adopts a joint governance system where participating companies join the board of directors, ensuring consortium-centered decision-making rather than control by a single entity. The revenue model distributes reserve asset income to partner companies after operating costs, according to OpenStandard, whereas USDT and USDC issuers retain most interest income from reserve assets.
The consortium emphasized ecosystem and use-case integration as a core advantage. USDT and USDC rely on post-issuance adoption by third parties, while OpenUSD secured payment, remittance, and asset management use cases from launch through participation of card companies, banks, big tech firms, e-commerce platforms, and blockchain companies. OpenStandard stated that the stablecoin is designed for large-scale transactions without separate issuance or redemption fees, making it suitable for business-to-business (B2B) payments, addressing cost burdens that existing stablecoins face during large-scale issuance and redemption processes.
Jack Abrams, founding CEO of OpenStandard, stated, "Existing stablecoins have many advantages, but for companies to utilize them on a large scale, something open, low-cost, and highly accessible was needed. We are pleased that over 140 companies have come together to launch OpenUSD." He added, "OpenUSD is designed for the internet economy and is a stablecoin created directly by the companies that actually grow that economy."
Circle Stock Drops 17% Following OpenUSD Announcement
The market interpreted the OpenUSD announcement as a new variable threatening the dominance of USDT and USDC. Industry analysis suggests the stablecoin competition may shift from a simple "issuer competition" to a "use-case competition" focused on actual payment and remittance applications. Circle's stock price fell approximately 17% in one day following the OpenUSD launch plan disclosure, reaching its lowest level in about four months.
Although OpenUSD has not officially launched and has no transaction volume or market share, investors appear to have assessed that the new ecosystem involving major financial institutions and big tech companies could threaten Circle's business model in the long term. Some market observers view the reaction as premature. Tiger Research noted, "A significant portion of the 140+ OUSD partners are traditional financial institutions and general companies, not cryptocurrency firms. Regulatory review, service integration, and securing actual transaction volume will require considerable time." The firm added, "The partner company list does not immediately translate into circulation or market share. It will take significant time for the consortium to actually operate and create network effects," assessing that "Circle's sharp stock decline reflects excessive investor anxiety rather than fundamental deterioration."
Circle CEO Defends Market Position Citing Network Effects
Circle moved to address market concerns. Jeremy Allaire, CEO of Circle, stated on X (formerly Twitter) on May 1 (local time), "Competitiveness in the stablecoin market is formed as liquidity, regulatory approval, and global integrated networks accumulate over years." Citing data from analytics firm Artemis, he emphasized the network effects of existing operators, stating, "USDC processed approximately 80% of dollar-denominated stablecoin on-chain transaction volume in Q1 this year, with most of the remainder handled by Tether."
FAQ
What did OpenStandard announce on April 30?
OpenStandard announced the launch of OpenUSD (OUSD), a dollar-pegged stablecoin developed by a consortium of over 140 companies including Visa, Mastercard, Stripe, BlackRock, Google, IBM, Coinbase, and Solana, with plans to release it within this year.
How does OpenUSD differ from USDT and USDC?
OpenUSD operates under a consortium governance model where participating companies join the board of directors, contrasts with the centralized control of USDT and USDC. It distributes reserve asset income to partner companies after operating costs, whereas USDT and USDC issuers retain most interest income. OpenUSD also integrates use cases for payment, remittance, and asset management from launch through direct participation of financial institutions, card companies, and tech firms.
Why did Circle's stock price drop after the OpenUSD announcement?
Circle's stock fell approximately 17% to a four-month low following the OpenUSD announcement as investors assessed that the consortium involving major financial institutions and big tech companies could threaten Circle's business model in the long term, despite OpenUSD not yet having launched or secured transaction volume.
