Open USD launches with Stripe backing to challenge Tether and Circle’s dominance

Open Standard’s new stablecoin OUSD, backed by over 200 organizations and now integrated into Stripe’s $1.9 trillion annual payment volume, aims to compete directly with Tether and Circle’s dominant positions in the dollar stablecoin market. The revenue-sharing structure with partners represents a structural shift in how stablecoin networks distribute economic incentives.

• OUSD launched September 30 with $468.4 million in circulation, backed by $257.2 million in cash and $211.2 million in Treasuries and money-market funds.
• Stripe processed $1.9 trillion in total volume during 2025, up 34% from 2024, providing distribution reach for a token currently worth less than 0.3% of monthly payment volume.
• Dollar stablecoins exceed $300 billion in total value, with USDT and USDC controlling roughly 84% of the market, leaving OUSD with 0.15% and significant scale disadvantages to overcome.

• $468.4M OUSD tokens outstanding at launch compared to $300B total stablecoin market
• 34% Stripe’s payment volume growth in 2025 versus prior year
• $1.9T Stripe’s annual transaction volume, equivalent to roughly $158 billion monthly
• 84% Market share held by USDT and USDC combined in dollar stablecoin sector

Open USD launched on September 30 as a new stablecoin built by Open Standard, an independent company founded by Coinbase, Mastercard, Shopify, Stripe, and Visa, according to CryptoSlate. The token debuted with $468.4 million in circulation and immediate distribution through Stripe, one of the largest payment networks globally. Reserve backing totaled $468.45 million, split between $257.2 million in cash and $211.2 million in Treasuries and short-duration money-market funds.

Stripe’s distribution network puts OUSD before a far larger payment base than its competitors

Stripe processed $1.9 trillion in total payment volume during 2025, up 34 percent from the prior year, which translates to roughly $158 billion per month. OUSD’s initial $468 million in circulation represents less than 0.3 percent of that monthly figure, illustrating the scale advantage Stripe could unlock if businesses adopt the token for payments and treasury operations.

Stripe announced that businesses can now hold OUSD through Stripe Treasury, send it through Global Payouts, accept it with Stripe Payments, and use it with stablecoin-backed card products, subject to geographic availability and product terms.

Zero-cost minting and revenue-sharing economics reshape stablecoin incentive structures

OUSD operates under a fundamentally different economic model than existing market leaders. Open Standard charges a small, predictable transaction fee, with most reserve yield flowing back to participating partners rather than to the stablecoin issuer itself.

Stripe co-founder and Chief Executive Patrick Collison said the reserve yield allocation is based on OUSD supply and the activity partners generate, creating economic incentives for payment companies and platforms to actively distribute the token. The partnership also enlists more than 200 financial institutions, fintechs, banks and businesses, with Visa and Coinbase among the founding members.

Competitive dominance by USDT and USDC leaves room for only marginal gains in early months

Dollar stablecoins exceed $300 billion in total market value. Tether’s USDT dominates at roughly $183.8 billion, while Circle’s USDC holds near $74.1 billion, combining for approximately 84 percent of the sector. OUSD’s $468 million supply, at 0.15 percent of the total market, trails incumbents by orders of magnitude in exchange liquidity, payment integrations, and established usage patterns.

The next growth phase begins with planned expansion beyond launch liquidity. Coinbase started supporting the network on October 1, while additional Mastercard distribution through BVNK is underway, offering businesses more routes to hold, move and deploy OUSD across payment and treasury workflows.

The BlockWest read. OUSD’s early scale pales against incumbents, but the revenue-sharing model inverts stablecoin economics: instead of yield accruing to issuers, it flows to the payment networks and fintech companies that adopt and move the token. If Stripe’s ecosystem migrates volume toward OUSD for cost and incentive reasons, the architectural advantage compounds faster than traditional liquidity-driven growth allows.

The litmus test arrives in the weeks following Coinbase and Mastercard activation: whether businesses begin routing significant transaction volume through OUSD and whether the partner rewards mechanism drives measurable adoption across Stripe’s fintech integrations, or whether the incumbents’ depth and liquidity prove too durable to dislodge.

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