Open USD Alliance: A Paradigm Shift in Reserve Interest Distribution
The Open USD stablecoin alliance has been officially launched, with its core mechanism being a redistribution of reserve interest—instead of the issuer keeping all the proceeds, a majority is now allocated to enterprises that adopt the stablecoin. This model directly threatens Circle's profitability, as USDC's revenue heavily relies on interest income from reserves.
Seven Years in the Making: From Libra to Open USD
The Libra project, led by Facebook in 2019, collapsed under regulatory pressure. However, over the past seven years, global stablecoin regulation (e.g., EU MiCA), blockchain infrastructure (Ethereum Layer2, cross-chain protocols), and commercial adoption (payments, cross-border settlements) have matured significantly. Open USD returns in a more pragmatic and compliant form, with payment giants like Visa and Mastercard leveraging it to build the next-generation dollar electronic settlement network.
Impact on Circle and USDC
If the Open USD model gains traction, Circle faces dual pressure: enterprises may switch to the alliance token for higher yields, and USDC's market cap and liquidity could be drained. Currently, USDC has a market cap of around $35 billion, and over 70% of Circle's annual revenue comes from reserve interest. The launch of Open USD signals a shift from issuer-centric stablecoins to alliance-based shared revenue models, reshaping the industry landscape.