Open USD, a bank-backed group developing a dollar-pegged stablecoin, is the most credible threat yet to Circle Internet’s (CRCL) $USDC because it targets the economics at the heart of the company’s business, crypto asset manager CoinSharessaid in a Monday report.
Unlike traditional stablecoin issuers, who keep the income generated by their reserves, Open USD plans to distribute the yield to participating businesses, retaining only a management fee. CoinSharessaid the model could squeeze Circle’s margins while raising the cost of maintaining $USDC distribution.
“If successful, Open USD could push stablecoins further into mainstream payments by making the economics and governance more attractive for the businesses actually using them,” wrote analyst Luke Nolan.
Developed by Open Standard, the institutional-focused stablecoin is backed by a consortium of more than 140 companies, including BlackRock (BLK), Coinbase (COIN), Mastercard (MA), Stripe and Visa (V), and is targeting a second-half 2026 launch. Key details, including its reserve structure and fee model, remain undisclosed.
The model also strengthens Coinbase’s hand ahead of the Aug. 18 renewal of its revenue-sharing agreement with Circle, under which the exchange receives roughly half of $USDC‘s reserve income, the report said.
