#open usd

➤ Coinbase has joined the Open USD consortium, a new stablecoin initiative with major players like Stripe, BlackRock, and Visa, potentially diversifying its revenue streams. ➤ This move comes as Coinbase prepares to renegotiate its lucrative revenue-sharing deal with Circle, the issuer of USDC, creating competitive pressure on Circle. ➤ The development signals a shift towards a consortium-based model for stablecoins, potentially impacting USDC's market dominance and Circle's business model.

➤ A new dollar-pegged stablecoin, Open USD, has been announced by a consortium of over 140 organizations, including major players like Visa, Mastercard, BlackRock, and Coinbase. ➤ Open USD aims to challenge Circle's dominant USDC by offering a revenue-sharing model on its reserves and free minting/redemption, which has caused a significant drop in Circle's stock. ➤ Despite the potential disruption, the article suggests Circle's first-mover advantage, regulatory progress, and established payment network will be difficult for Open USD to overcome, and the success of stablecoins hinges on broader adoption in daily financial management.

➤ A consortium of over 140 companies, including Visa, Coinbase, and BlackRock, launched Open USD (OUSD), a stablecoin that directly challenges Circle's revenue model by distributing reserve income to participants. ➤ Circle's stock (CRCL) plummeted 17% following the announcement, as investors recognized the threat to its primary revenue stream derived from interest on USDC reserves. ➤ While Circle has defenses in regulation and trust, OUSD's shared-economics model, supported by major players in payments and crypto, poses a significant competitive threat, potentially impacting Circle's margins and partner leverage.

➤ Strategy has authorized up to $1.25 billion in Bitcoin sales to fund dividends and buybacks, signaling a shift towards pragmatic capital management. ➤ A new US dollar-backed stablecoin, Open USD (OUSD), has launched with backing from major payment and crypto firms, aiming to capture market share by allowing users to retain reserve yield. ➤ Fidelity Digital Assets defends Bitcoin's long-term security model against halving concerns, while the crypto industry significantly increases its political spending ahead of the US midterm elections.

➤ Several major South Korean firms, including Samsung Electronics and Dunamu, have stated they did not formally agree to join the Open USD (OUSD) stablecoin alliance, despite being listed as members. ➤ These companies indicated they had only discussed potential participation and were unaware of their inclusion until media reports surfaced. ➤ The OUSD alliance, proposed by Open Standard, aims to function as a cooperative network with a shared reserve income model, but its claimed membership is facing significant dispute.

➤ Circle's stock experienced an 18% drop following the announcement of Open USD, a rival stablecoin backed by a consortium of 140 firms including Visa and Mastercard. ➤ The new stablecoin, OUSD, aims to disrupt Circle's revenue model by offering zero-fee transactions and sharing reserve earnings with participants, unlike Circle's current practice of retaining all yield. ➤ Despite initial panic, some analysts believe the stablecoin market is large enough for multiple players, but OUSD's revenue-sharing model poses a significant threat to Circle's profitability.

➤ A new consortium of over 140 financial institutions, including major players like Visa, Mastercard, and BlackRock, is launching Open USD, a stablecoin aimed at generating yield from idle settlement cash for banks and fintechs. ➤ Unlike existing stablecoins, Open USD will be governed by a board of its partners, allowing for collective decision-making on reserves and redemption rules, and sharing reserve earnings after a management fee. ➤ The initiative tests the viability of shared infrastructure for tokenized dollars and could signal a shift towards consortium-owned payment networks, impacting mainstream treasury operations and cross-border settlements.

➤ Crypto card deposits have surpassed $10 billion, showing significant year-to-date and year-over-year growth. ➤ This growth is primarily driven by the adoption of stablecoins, which offer benefits like faster settlement and lower fees for cross-border transactions. ➤ Major payment networks like Visa and Mastercard are integrating with these crypto card platforms, indicating increasing mainstream acceptance and utility.