A group of over 140 major companies, including Stripe, Visa, and BlackRock, announced plans to launch Open USD (OUSD), a new stablecoin built to challenge the dominance of Tether and Circle in the cryptocurrency market. The initiative, led by Open Standard, represents a significant shift in how large corporations view stablecoin infrastructure and control.

What Are Stablecoins and Why Do They Matter?

Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to real-world assets, typically the U.S. dollar. Unlike Bitcoin or Ethereum, which fluctuate wildly in price, stablecoins aim to hold a consistent value, making them useful for payments, trading, and storing value in the crypto ecosystem. Currently, two companies dominate this space: Tether's USDT controls approximately 62% of the stablecoin market, while Circle's USDC holds roughly 25%, according to crypto analytics firm CoinGecko.

Why Are Major Companies Building Their Own Stablecoin?

The launch of Open USD signals a broader trend among large corporations seeking greater control over payment infrastructure. Rather than relying on Tether or Circle, these companies want to build a stablecoin that returns most of the interest earned on reserve assets directly to participants, minus only a small management fee. This revenue-sharing model differs from how existing stablecoins operate and appeals to companies that view stablecoins as critical infrastructure for the digital economy.

Zach Abrams, interim CEO of Open Standard and cofounder of Bridge (which Stripe acquired for $1.1 billion in 2025), explained the vision behind the initiative. "It's a stablecoin built for the internet economy, designed by the businesses growing it," Abrams stated. This approach reflects a shift from treating stablecoins as niche crypto products to viewing them as essential payment rails for mainstream commerce.

How to Understand the Competitive Landscape of Stablecoins

• Market Concentration Risk: Tether and Circle's combined 87% market share creates dependency on two issuers, which Open Standard's consortium aims to reduce by distributing control among 140+ participants.
• Revenue Model Differences: Open USD returns most reserve interest to participants, whereas traditional stablecoins like USDT and USDC retain more of this revenue for their issuers.
• Regulatory Tailwinds: The July 2025 Genius Act established a federal regulatory framework for stablecoins, enabling new entrants to launch with greater legal clarity than existed previously.

The timing of Open USD's announcement reflects a broader wave of stablecoin innovation following regulatory clarity. After President Donald Trump signed the Genius Act into law in July 2025, several corporations began experimenting with stablecoins. In November 2025, payments provider Klarna launched KlarnaUSD, while retail giants Amazon and Walmart have expressed interest in issuing their own stablecoins.

Open Standard did not disclose which blockchain will host OUSD, though the choice of network could significantly impact adoption and interoperability. The stablecoin is expected to launch later in 2026.

How Are Established Players Responding?

The market reacted swiftly to the announcement. Circle's stock price fell 13% following the news, trading down to $66 per share. However, both Tether and Circle issued measured responses, suggesting confidence in their market positions.

"We welcome continued innovation and competition in the space," said Jeremy Allaire, CEO of Circle.

Jeremy Allaire, CEO at Circle

Tether's response was more playful. "Welcome OUSD. Player 2 has entered the game," remarked Paolo Ardoino, CEO of Tether. Both companies' relatively calm reactions suggest they view competition as inevitable rather than existential, though the market clearly sees Open USD as a credible threat.

Is This the First Time Major Companies Have Banded Together on Blockchain?

No. The stablecoin and blockchain space has seen several consortium efforts in recent years. In November 2024, Singapore-based Paxos launched USDG, a stablecoin backed by the Global Dollar Network, which includes major players like Mastercard, Robinhood, and Kraken. Additionally, Stripe worked with venture firm Paradigm to launch Tempo, a blockchain designed specifically to support stablecoin payments.

Even traditional banking has embraced consortium models. Earlier in June 2026, JPMorgan Chase, Bank of America, Citigroup, and other major banks unveiled The Clearing House, a payments system that moves bank deposits as digital tokens over blockchain-style rails. These initiatives demonstrate that large institutions increasingly view blockchain-based payment infrastructure as strategically important.

Open USD's launch later this year will test whether a consortium-based stablecoin can compete effectively against entrenched players. The combination of major payment processors, financial institutions, and technology companies suggests serious backing, but execution and regulatory approval remain critical hurdles. As the stablecoin market continues to mature, competition between centralized issuers and consortium-based models will likely shape how digital payments evolve in the coming years.