How Mastercard, Stripe, Visa and Coinbase’s New Stablecoin Is Changing the Industry’s Economics
By PYMNTS
AI summary of the source article
The 140-member Open Standard consortium, backed by firms such as Stripe, Visa, Mastercard, Coinbase, and Shopify, has launched a dollar-pegged stablecoin named Open USD (OUSD). Traditional stablecoin models retain interest generated from dollar reserves with the issuer, but OUSD is structured to distribute reserve earnings, minus a management fee, to businesses integrating the token into workflows like merchant checkout and cross-border payments. Additionally, participating businesses can mint and redeem OUSD at par without fees or volume caps. By realigning incentives toward distributors, the project seeks to drive adoption across mainstream financial infrastructure and capture upcoming transaction volume transitioning on-chain.
Why it matters
The model challenges the traditional stablecoin issuance economics by sharing reserve yield with distributors rather than concentrating it with the token issuer.
Key facts
- Open Standard, backed by firms including Stripe, Visa, Mastercard, Coinbase, and Shopify, launched the Open USD (OUSD) stablecoin.
- OUSD returns reserve earnings, minus a management fee, to participating businesses that integrate the token into payment and treasury workflows.
- Businesses can mint and redeem OUSD at par without fees or artificial volume limits.