Open USD enters market with shared ownership model

Open USD, a dollar-backed stablecoin backed by prominent payments, technology and cryptocurrency firms, has launched with an ownership distribution model. The stablecoin, developed by independent company Open Standard, became available on Wednesday across Ethereum, Solana, Base and Tempo blockchains. Founding partners Coinbase, Mastercard, Shopify, Stripe and Visa have collectively committed over $1 billion to establish Open USD liquidity.

Open Standard CEO Zach Abrams stated that the team plans to distribute the majority of the company's equity over time to partners based on their contributions to supply and transactions. This approach differentiates Open USD from other stablecoins, which typically retain reserve earnings. Partners meeting a minimum threshold can earn equity through the OUSD supply they create and transactions they facilitate.

Founding partners received equal initial equity stakes, and a smaller board of founders is planned. Nearly all revenue generated by the assets backing OUSD will be returned to participating companies, after a minimal management fee. Businesses can mint and redeem the stablecoin without fees, addressing potential costs for institutions moving large sums between currencies.

Open Standard aims to make OUSD useful for payments and financial infrastructure, targeting areas such as banking, cross-border payments, card settlement, institutional trading and lending. The stablecoin market currently exceeds $300 billion, with Tether's USDT and Circle's USDC being the dominant players. Open Standard's partner network has grown from over 140 firms announced in June to more than 200, including banking, payments, crypto and technology businesses.

The distinction between partners and owners is notable, as Open Standard operates as a management-led business with a smaller group of founders maintaining ownership and governance roles.