WASHINGTON — A consortium backed by more than 140 companies, including BlackRock, Google, Coinbase, Visa, Mastercard and Stripe, has announced it is launching a new U.S. dollar-backed stablecoin called Open USD in an effort to accelerate mainstream adoption of digital assets.
The initiative, known as Open Standard, said the stablecoin is expected to launch later this year on multiple blockchain networks, including Coinbase-affiliated Base and Solana, according to Reuters and The Wall Street Journal.
Seeking to Address ‘Barriers’
The consortium said Open USD is intended to address barriers that have limited broader business use of stablecoins by offering a network that is open, low-cost, high-capacity and broadly accessible. Businesses participating in the network will be able to mint and redeem the stablecoin without fees or volume limits, Reuters reported.
Open Standard also said earnings generated from the reserves backing Open USD will be shared among participating organizations after a management fee is deducted to cover operating costs.
“Existing stablecoins have great strengths, but to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests,” Open Standard founding CEO Zach Abrams said, according to Reuters.
Intensifying Competition
The launch comes as competition intensifies in the rapidly expanding stablecoin market following enactment of the GENIUS Act, which established the first federal regulatory framework for dollar-backed stablecoins. Industry observers have said the law is expected to encourage broader use of digital dollars in payments and money transfers.
Despite growing regulatory clarity, stablecoins remain used primarily for cryptocurrency trading rather than everyday consumer payments, Reuters reported. Stablecoins are digital tokens designed to maintain a fixed value by being backed by traditional assets such as U.S. dollars or short-term government securities.
140 Participating Companies
According to The Wall Street Journal, the Open USD consortium includes approximately 140 participating companies spanning financial services, technology and cryptocurrency. In addition to BlackRock, Google and Coinbase, members include Visa, Mastercard and Stripe.
The consortium’s structure differs from many existing stablecoin issuers by emphasizing shared governance and economics rather than concentrating ownership with a single company. Carolyn Weinberg, chief product and innovation officer at BNY, said the model could help accelerate adoption.
‘Unique Combination’
“A stablecoin with neutral governance and shared economics is a unique combination that has potential to unlock the next phase of digital assets growth,” Weinberg said, according to Reuters.
The announcement also represents an unusual development for Coinbase, which co-founded the rival USDC stablecoin with Circle Internet Group. According to The Wall Street Journal, Open USD will compete in a market currently dominated by Tether and USD Coin, which together account for roughly $260 billion in market capitalization.
