Stripe, Visa and 140 partners launch Open USD stablecoin

A sweeping consortium of financial and technology companies on Tuesday formally launched Open Standard, an independent venture that will issue a new dollar-backed stablecoin called Open USD, directly challenging Circle's USDC in the institutional payments market.

A New Model for Digital Dollars

Open Standard's founding partners include Visa ↗ 2.82%, Stripe, Mastercard ↗ 3.34%, BlackRock ↗ 5.98%, Coinbase ↗ 3.91%, Alphabet ↗ 3.92%, Bank of New York Mellon The Bank of New York Mellon Corporation ↗ 1.24%, Klarna, Shopify ↗ 6.60%, Ripple, and more than 140 other businesses spanning payments, banking, fintech, and crypto, according to CoinDesk and Bloomberg. Zach Abrams, co-founder and CEO of Stripe-owned stablecoin infrastructure firm Bridge, will serve as Open Standard's interim CEO.coindesk+1

The stablecoin introduces a consortium-governance model that breaks from the single-issuer approach used by Circle and Tether. Partners will be able to mint and redeem tokens without fees, and income generated from reserve management will be shared among participants after a small management fee is deducted. All partners plan to integrate the stablecoin into their systems once it goes live later this year, with Stripe expected to make it the default for its stablecoin transactions.investing+3

Circle Shares Under Pressure

Circle ↗ 1.20% shares fell as much as 8% in Tuesday morning trading following the announcement. The sell-off reflects investor concern that Open USD's deep roster of backers and fee-free structure could erode USDC's dominance in institutional and business-to-business payments. CoinDesk had first reported earlier in June that Stripe, Visa, and Mastercard were backing a new stablecoin platform, sending Circle shares lower at the time as well.investing+2

Regulatory Tailwinds

The launch comes as U.S. stablecoin regulation takes shape under the GENIUS Act, signed into law in July 2025, which established the first comprehensive federal framework for payment stablecoins. The Office of the Comptroller of the Currency issued proposed rules earlier this year to operationalize the law, creating a licensing pathway and capital requirements for issuers. Open Standard's structure — neutral governance, full reserve backing, and broad institutional buy-in — appears designed to fit squarely within the emerging regulatory environment, giving it a potential compliance advantage as federal and state regulators finalize implementation rules ahead of a July 2026 deadline.brookings+2