Financial giants back Open USD stablecoin, let issuers keep reserve yield

A consortium of major financial and crypto companies, including Visa, Mastercard, and several crypto firms, is backing a new US dollar stablecoin called Open USD, set to launch sometime in 2026. The project aims to disrupt the stablecoin market by allowing issuers to mint tokens at no cost and retain the earnings from the reserve assets backing the stablecoin.

The Open USD stablecoin is designed to give financial institutions more control over their stablecoin operations. Unlike Tether's USDT and Circle's USDC, which manage their own reserves and keep the yield, Open USD passes the reserve earnings to the issuers. This model could attract banks and fintech companies that want to offer stablecoin services without giving up the interest income on the underlying reserves. For crypto traders, a more competitive stablecoin landscape could lead to tighter spreads and more liquidity across exchanges, though the impact will depend on adoption rates. NowPrice's crypto page tracks real-time prices of major stablecoins and digital assets to help traders monitor market shifts.

Looking ahead, the success of Open USD will hinge on regulatory approval and integration with existing payment networks. The involvement of Visa and Mastercard suggests a push for mainstream acceptance, but the stablecoin must still navigate evolving US and global regulations. Traders should watch for updates on the launch timeline and any partnerships that could accelerate adoption, as well as the response from Tether and Circle, which may adjust their own fee structures or yield-sharing policies.