Open Standard has announced the launch of a new dollar-pegged stablecoin, Open USD, which has secured backing from 140 leading institutions across payments, finance, technology, and crypto sectors, including Visa, Mastercard, BlackRock, Google, and Coinbase. The stablecoin introduces several innovative features: zero-cost minting and redemption, yield sharing of reserve returns with partners, and a neutral governance framework. These mechanisms are designed to challenge the market dominance of Circle's USDC stablecoin.
The news had an immediate and sharp impact on the market. Circle's stock (ticker: CRCL) plunged more than 17% in a single trading session. Analysts note that Open USD's strong institutional endorsement and differentiated model could significantly reshape the stablecoin landscape, putting unprecedented pressure on USDC. Market participants will closely watch Circle's response and the real-world adoption of Open USD in the coming months. The development underscores the intensifying competition in the stablecoin sector as new entrants seek to capture market share from incumbents.