Visa, Stripe, Coinbase and more join Open USD stablecoin
Visa, Stripe, Coinbase, and other major companies have partnered to launch the Open USD stablecoin initiative. The project aims to create a shared standard for the stablecoin, with participating firms agreeing to share reserve data and revenue generated from the stablecoin's use.
Background
- **Stablecoins** are cryptocurrencies designed to maintain a fixed value, typically $1, by holding reserves of traditional currency or equivalents. They are widely used for trading, payments, and as a bridge between crypto and traditional finance.
- **Open USD** is a new stablecoin project that aims to be more transparent and decentralized than existing options. Unlike dominant stablecoins such as USDC (Circle) or USDT (Tether), Open USD shares revenue from its reserve holdings with ecosystem participants.
- **Visa, Stripe, and Coinbase** are major U.S. payments and crypto infrastructure companies. Their involvement signals growing mainstream institutional interest in stablecoin-based payment rails.
- The key innovation here is the **revenue-sharing model**: typically, the company behind a stablecoin keeps the interest earned on its dollar reserves. Open USD shares that yield with partners, potentially creating incentives for wider adoption among fintech firms and exchanges.