Open USD goes live with $1 billion in commitments from five payment giants, and it’s built to take Tether and Circle’s revenue

Open USD went live on Sept. 30 with more than $1 billion in liquidity commitments from Coinbase, Mastercard, Visa, Stripe and Shopify. Unlike Tether and Circle, which keep most of the interest on their reserves, it plans to share that income with the businesses that help it grow. Mizuho has already downgraded Circle over the threat.

Developed by Open Standard, the initiative brings together five major financial and technology companies under a shared ownership structure. Unlike conventional stablecoin issuers, the project intends to distribute much of its financial returns to businesses that contribute to its growth and adoption.

The launch introduces a new competitor to Tether’s USDT and Circle’s USDC, two of the largest dollar-backed cryptocurrencies. It also follows growing institutional interest in blockchain-based payments and comes amid concerns about the long-term profitability of established stablecoin issuers.

Open USD debuts with $1 billion in liquidity commitments

The launch of Open USD represents a coordinated effort by five major companies to expand the use of stablecoins beyond cryptocurrency trading. Coinbase, Mastercard, Visa, Stripe and Shopify are the founding partners of Open Standard, the independent company responsible for developing the initiative.

Together, the companies have committed more than $1 billion to support the stablecoin’s initial liquidity. However, the commitment does not mean that $1 billion in tokens is already circulating.

The cryptocurrency is issued by Bridge, a Stripe-owned company, with its reserves held at BlackRock, Lead Bank and BNY. Open Standard has also announced plans to publish monthly reserve attestations to provide transparency about the assets backing the token.

Businesses can mint and redeem Open USD at a one-to-one ratio with the US dollar without paying issuance or redemption fees. The stablecoin is designed for international payments, financial settlements, institutional trading and other commercial applications.

Zach Abrams, CEO of Open Standard, explained that the initiative aims to make stablecoins more practical for everyday financial transactions.

The company wants to develop a digital dollar that businesses can use as easily as traditional money, rather than one primarily associated with cryptocurrency investments.

The token is available on Ethereum, Solana, Coinbase’s Base and Stripe’s Tempo networks. Businesses can also access integration services through several established payment platforms.

Open USD introduces a different stablecoin business model

Beyond its initial liquidity commitments, Open USD is introducing an ownership and revenue-sharing structure that distinguishes it from established competitors.

The five founding companies hold equal initial equity stakes in Open Standard. However, the company plans to distribute most of its equity over time to partners according to their contributions to the stablecoin’s adoption and growth.

Abrams explained that the initiative intends to reward companies based on the value they bring to the network.

“The overwhelming majority of our cap table is going to be distributed back to founders and non-founders based on how they help grow the network,” Abrams said.

The arrangement could encourage payment providers, financial institutions and technology companies to integrate the stablecoin into their existing services.

Open Standard has attracted interest from more than 200 organizations, including financial institutions and businesses. Among the companies associated with its expanding network are Japan’s SBI Holdings, Switzerland’s UBS and financial technology firm Jeeves.

The project was initially announced in June 2026, when more than 140 companies were identified as potential participants.

Meanwhile, Tempo executive Dan Romero has highlighted the potential for the stablecoin to support large-scale payment transactions. He projected that its supply on Tempo could reach $1 billion within months and potentially exceed $10 billion by 2027. These figures are projections, not confirmed adoption milestones.

Open USD challenges Tether and Circle as competition intensifies

The arrival of Open USD introduces additional competition for Tether and Circle, whose USDT and USDC tokens dominate the dollar-backed stablecoin market.

The established issuers generate substantial revenue from the interest earned on their reserve assets. Circle also shares some reserve income with strategic partners, including Coinbase.

Open Standard, however, plans to distribute much of its reserve-related earnings to participating businesses after deducting operational expenses. This approach could make the stablecoin attractive to companies seeking additional revenue from payment activities.

The competitive implications have already attracted attention from financial analysts.

In July 2026, Japanese investment bank Mizuho downgraded Circle’s stock from Neutral to Underperform and reduced its price target from $85 to $50. Analyst Dan Dolev cited the potential threat posed by Open USD’s revenue-sharing model.

Mizuho also raised its projected distribution and transaction cost ratio for Circle in 2027 from 64% to 73%, while lowering its adjusted earnings forecast from $1.09 billion to $699 million.

The downgrade reflects concerns about Circle’s future profitability rather than evidence that the new stablecoin has already taken significant market share.

Despite the competitive pressure, Open USD’s launch could expand the range of stablecoin infrastructure available to businesses. Its success will depend on adoption, liquidity, regulatory developments and the ability to maintain reliable dollar redemption.

With major payment companies supporting its initial rollout, Open USD enters the market with established distribution channels and a business-oriented strategy. Whether that translates into sustained demand remains to be seen.