Open Standard, a consortium of 149 global companies including payment processors, banks, big tech firms, and digital asset companies, announced on June 30 (local time) the launch of a new stablecoin called OUSD (Open USD) in the second half of this year. The initiative aims to address limitations in the current stablecoin market dominated by USDT (Tether) and USDC (USD Coin), including high issuance and redemption fees, limited revenue structures, and centralized decision-making by specific issuers. The consortium operates under a participant-governed structure led by CEO Zack Abrams, co-founder of payment company Bridge, with the board composed of participating companies making decisions based on ecosystem-wide interests rather than any single entity's priorities.
Samsung Electronics and Dunamu Among 149 Global Participants
OUSD differentiates itself through three core principles: free mint and burn (no issuance or redemption fees), revenue sharing from reserve asset operations among participating companies, and participant-centered governance. Open Standard stated on its website on June 30 (local time) that the current stablecoin market suffers from high issuance and redemption costs, limited revenue structures, and decision-making centered on specific issuers, and that OUSD will enable companies to utilize stablecoins within a more open structure.
The participant roster includes global payment companies Visa, Mastercard, and Stripe, financial institutions BlackRock and Standard Chartered, and domestic Korean participants KB Kookmin Card, Woori Card, Samsung Card, and Kakao Bank. Samsung Electronics joins the consortium alongside global IT companies Google and IBM. Digital asset industry participants include Coinbase, OKX, Crypto.com, Ripple, MetaMask, and Dunamu.
Circle and Tether Issue Contrasting Responses on June 30
Circle CEO Jeremy Allaire responded on X on June 30 (local time) by emphasizing that Circle has built the world's largest regulated stablecoin network over the past decade, with USDC serving as the most trusted institution-friendly stablecoin used by thousands of institutions, banks, payment companies, and global enterprises already participating in the Circle ecosystem. Allaire questioned the viability of OUSD's free issuance and redemption model, stating that stablecoin market competitiveness depends on strong liquidity, regulatory infrastructure, and developer ecosystems, and that models offering free redemption or distributing all revenue to participants face practical constraints. He noted that stablecoins lacking liquidity ultimately depend on other stablecoins' redemption infrastructure, and that large corporate consortiums may face slower decision-making processes.
Tether CEO Paolo Ardoino posted a brief message on X stating "Welcome OUSD. Player 2 has entered the game." While Circle displayed caution by emphasizing USDC's competitive advantages and institutional network, Tether acknowledged OUSD as a new player and competitor. This contrast suggests that OUSD's launch may pose a greater challenge to Circle, which operates closer to institutional markets, than to Tether.
Circle Stock Falls to $64.62 Following OUSD Announcement
The market reacted swiftly to the OUSD announcement. Circle's stock price on the New York Stock Exchange (NYSE) dropped from around $80 to the $60 level immediately after the OUSD announcement, as investors anticipated that OUSD could directly compete with USDC and potentially erode existing market share. Circle's stock later partially recovered, closing at $64.62 (approximately 99,000 won) on the 6th according to Yahoo Finance.
The stabilization of Circle's stock decline is attributed to Circle's accelerated expansion in institutional markets. On the 2nd, Circle partnered with Standard Chartered to launch an integrated service enabling institutional investors to issue and redeem USDC more easily, leveraging global banking infrastructure to improve institutional customer accessibility—a development reflected in the stock price.
Participating Companies Clarify Early-Stage Involvement
However, the primary reason for the halt in Circle's stock decline appears to be confirmation that OUSD participating companies' actual business operations remain in early stages. According to reporting by Digital Asset, Kakao Bank, one of the OUSD participants, stated that its participation represents "an expression of intent to participate as a distribution institution" and that launch schedules and detailed business content have not yet been disclosed. Dunamu similarly clarified that participation represents "confirmation of ecosystem participation intent" and that no concrete business or stablecoin issuance has been decided, adding that understanding this as an already-progressing joint business would be incorrect. Samsung Electronics and IBM acknowledged participation but did not disclose specific collaboration details.
These cautious responses from participating companies do not necessarily indicate OUSD's overhype or lack of market viability. Currently disclosed participating companies clearly possess intent to join the ecosystem, but their actual roles and business structures are likely to be specified during the forthcoming launch process, necessitating cautious public statements at this stage.
OUSD Positions as Potential Third Axis in Stablecoin Market
The emergence of OUSD carries significance beyond merely adding one new stablecoin to the market. The stablecoin market has been effectively divided between USDT and USDC, with Tether leveraging overwhelming liquidity and transaction volume while Circle advances regulatory friendliness and institutional networks.
OUSD presents an entirely different approach by centering on an open ecosystem based on a global corporate alliance rather than a specific issuer. Whether OUSD can disrupt the market positions of USDT and USDC remains uncertain. Significant challenges require verification, including the sustainability of the free issuance and redemption model, the level of active service engagement from participating companies, and the ability to secure sufficient liquidity.
Nevertheless, the fact that major global payment companies, financial institutions, big tech firms, and digital asset companies have joined a single stablecoin ecosystem alone generates substantial market interest. If OUSD secures actual services and liquidity, the duopoly structure led by USDT and USDC may fracture. The formation of a third axis would herald significant changes in the global stablecoin market and intensify competitive dynamics. The roles and weight of Korean companies that declared OUSD participation represent another key point of interest.
FAQ
What did Open Standard announce on June 30?
Open Standard announced on June 30 (local time) the launch of OUSD (Open USD), a new stablecoin scheduled for release in the second half of this year, with participation from 149 global companies including Visa, Mastercard, BlackRock, Samsung Electronics, Kakao Bank, and Dunamu.
How did Circle and Tether respond to the OUSD announcement?
Circle CEO Jeremy Allaire responded on June 30 (local time) by emphasizing USDC's institutional network and questioning OUSD's free model sustainability, while Tether CEO Paolo Ardoino posted a brief welcoming message on X stating "Welcome OUSD. Player 2 has entered the game."
What happened to Circle's stock price after the OUSD announcement?
Circle's stock price fell from around $80 to the $60 level following the OUSD announcement, then partially recovered to close at $64.62 on the 6th according to Yahoo Finance, as investors assessed OUSD's potential competitive impact and Circle's institutional market expansion efforts.
