Shares of Circle Internet Group (CRCL) fell on Tuesday after Open Standard unveiled Open USD (OUSD), a dollar stablecoin backed by more than 140 companies, including Visa, Mastercard, and Coinbase, that targets the market its USD Coin (USDC) token leads.
The launch puts payment networks, banks, and crypto firms behind a single token. It lands as Circle's USDC and Tether's USDT control most of the stablecoin market.
Open USD goes after the enterprise users that drive USDC adoption. Businesses can mint and redeem it for free, and partners keep the earnings on its reserves after a small fee.
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That model strikes at how Circle makes money. Reserve interest produced 99% of its revenue in 2024, its filing shows.