The global stablecoin industry is entering a new phase of competition after Open Standard announced Open USD (OUSD), a new stablecoin backed by more than 140 major companies across the payments, technology, finance, and crypto sectors. The launch comes amid significant changes in the European stablecoin market, particularly after Tether's USDT became unavailable on several regulated EU platforms for failing to comply with the Markets in Crypto-Assets (MiCA) framework.

According to Reuters, the Open Standard consortium includes industry leaders such as Visa, Mastercard, Coinbase, and other partners from the digital payments and digital asset sectors. Unlike traditional stablecoins controlled by a single issuer, OUSD is designed for global payments and settlement using a consortium-based governance model.

OUSD Introduces a Consortium Model with Shared Reserve Revenue

Open Standard positions Open USD (OUSD) as a U.S. dollar-backed stablecoin built for cross-border payments, settlement, and enterprise-scale financial infrastructure. The stablecoin is expected to launch later this year with a governance structure shared among consortium members.

Under this model, ecosystem partners will participate in governance while also sharing revenue generated from the stablecoin's reserve assets after operational costs. This differs significantly from traditional stablecoin issuers, where reserve income is typically retained by a single company.

Zach Abrams, Co-Founder and CEO of Bridge, which was acquired by Stripe, will serve as the founding CEO of Open Standard. Abrams stated that businesses need a stablecoin that is "open, low-cost, high-capacity, accessible, and aligned with their interests."

OUSD is also expected to offer zero-fee minting and redemption while imposing no artificial issuance limits, potentially making it attractive for payment providers, exchanges, and enterprise applications handling high transaction volumes.

MiCA Regulations Reshape Europe's Stablecoin Market

The launch of OUSD coincides with a major regulatory shift in Europe. As of July 1, 2026, the transition period for the Markets in Crypto-Assets Regulation (MiCA) has officially ended. The European Securities and Markets Authority (ESMA) has stated that crypto asset service providers operating without authorization must orderly wind down their activities within the European Union.

As a result, stablecoins that do not comply with MiCA including USDT can no longer be offered by regulated crypto platforms to European users. Several major exchanges have already restricted or removed USDT for retail customers, directing users toward MiCA-compliant alternatives.

It is important to note that this does not mean USDT has ceased operating globally. Rather, its availability has become limited on platforms regulated under EU law. For European traders, this could affect liquidity, trading pairs, and the range of stablecoins available on regulated exchanges.

Circle Shares Fall Following OUSD Announcement

The announcement also had an immediate impact on Circle Internet Group (NYSE: CRCL). According to market data, CRCL traded around $62.63 on June 30, 2026, representing a decline of approximately 17.5% from the previous close.

Several market reports noted that Circle shares initially dropped nearly 14% to around $65.39 shortly after OUSD was unveiled. Investors viewed OUSD as a potential competitor to USDC, Circle's flagship stablecoin and one of the company's primary revenue drivers.

Investor concerns center on the stablecoin business model. Traditionally, issuers generate revenue from reserve assets such as U.S. Treasury securities and cash equivalents. By sharing reserve income with ecosystem partners, OUSD could attract large companies that previously acted only as stablecoin users or distribution partners.

Despite the market reaction, Circle CEO Jeremy Allaire reaffirmed that stablecoins remain a critical component of the internet's financial infrastructure. He highlighted USDC's strong institutional adoption and Circle's continued efforts to expand partnerships with banks, payment companies, and capital market firms.

Stablecoin Competition Shifts Toward Ecosystem Strategy

The arrival of OUSD signals that stablecoin competition is evolving beyond market capitalization and exchange liquidity. The next battleground increasingly revolves around distribution networks, enterprise partnerships, regulatory compliance, and how economic value from reserve assets is shared.

USDT remains the world's largest stablecoin by market capitalization, exceeding $184 billion, according to CoinMarketCap. However, Europe's stricter regulatory environment is creating opportunities for compliant alternatives to gain market share on regulated platforms.

Meanwhile, USDC has long positioned itself as the institution-friendly and regulation-focused stablecoin. However, OUSD's backing from companies including Visa, Mastercard, Coinbase, BlackRock, Google, BNY, and numerous other global firms could introduce significant competition in blockchain-based payments and settlement.

Conclusion

The launch of OUSD marks a new chapter in the stablecoin industry. While the market has historically been dominated by USDT and USDC, major payment companies, financial institutions, and technology firms are now collaborating to build a more open, consortium-driven stablecoin model.

For the crypto industry, this reinforces the growing view that stablecoins are becoming core digital financial infrastructure rather than merely tools for trading. Nevertheless, OUSD's long-term success will ultimately depend on real-world adoption, regulatory compliance, liquidity, and its ability to compete with established stablecoins that already enjoy large user bases.