Visa, Mastercard, Coinbase Back Open USD Stablecoin Consortium

Over 140 firms including Visa, Mastercard, and Coinbase have launched Open Standard, a consortium introducing Open USD (OUSD), a U.S. dollar-pegged stablecoin. Unlike single-issuer stablecoins, OUSD operates under a shared governance model with a revenue-sharing mechanism: businesses can mint and redeem without fees, and reserve earnings are distributed among partners. The initiative follows the GENIUS Act, the first U.S. federal law for payment stablecoins, providing regulatory clarity. Open USD will compete with Tether's USDT and Circle's USDC, aiming to shift stablecoin use from crypto trading to payments, cross-border settlements, and treasury management. BNY's Carolyn Weinberg noted the potential of neutral governance for digital asset adoption. The consortium enters a market with PayPal's PYUSD and growing institutional interest. CEO Zach Abrams emphasized the need for open, low-cost infrastructure. Investors reacted cautiously amid concerns over increased competition.