Open Standard to launch Open-USD to lower cost of minting and redeeming stablecoins

[The use of stablecoins in financial and settlement systems]
tanit boonruen/iStock via Getty Images

Open Standard introduced Open USD (OPEN-USD [https://seekingalpha.com/symbol/OPEN-USD]), a stablecoin that businesses can mint and redeem at no cost and with no artificial limits on volume, the company said Tuesday. It will be live later this year.

The new stablecoin has signed over 140 companies to participate, including Visa (V [https://seekingalpha.com/symbol/V]), Stripe (STRIP [https://seekingalpha.com/symbol/STRIP]), Mastercard (MA [https://seekingalpha.com/symbol/MA]), American Express (AXP [https://seekingalpha.com/symbol/AXP]), BlackRock (BLK [https://seekingalpha.com/symbol/BLK]), BNY (BNY [https://seekingalpha.com/symbol/BNY]), Google (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]), Shopify (SHOP [https://seekingalpha.com/symbol/SHOP]), Coinbase Global (COIN [https://seekingalpha.com/symbol/COIN]), Solana, and Ripple.

With the news, shares in Circle Internet Group (CRCL [https://seekingalpha.com/symbol/CRCL]), the issuer of USD Coin (USDC-USD [https://seekingalpha.com/symbol/USDC-USD]), tumbled 17% in Tuesday afternoon trading.

Other key design features of the yet-to-be-launched stablecoin include:

* Partners receive all earnings from Open USD's (OPEN-USD [https://seekingalpha.com/symbol/OPEN-USD]) reserves, less a small management fee to cover the token's operational costs; and
* Open USD (OPEN-USD [https://seekingalpha.com/symbol/OPEN-USD]) will be operated by Open Standard, an independent company with a board made up of Open USD's partners.

"Existing stablecoins have great strengths, but to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests," said [https://joinopenstandard.com/blog/introducing-open-usd] Zach Abrams, founding CEO of Open Standard. He describes OPEN USD as a "stablecoin built for the internet economy, designed by the businesses growing it."

Bloomberg reported on the new stablecoin [https://seekingalpha.com/news/4608497-visa-bny-mellon-stripe-others-partner-for-new-stablecoin]earlier on Tuesday.

MORE ON STABLECOINS

* Federal Reserve proposes program to identify some payment stablecoin customers [https://seekingalpha.com/news/4604853-federal-reserve-proposes-program-to-identify-some-payment-stablecoin-customers]
* Stablecoins, tokenized assets and regulated crypto: What's next for digital finance? [https://seekingalpha.com/news/4601441-stablecoins-tokenized-assets-and-regulated-crypto-whats-next-for-digital-finance]
* Circle: I Think The Stablecoin Revolution Has A Clear Winner [https://seekingalpha.com/article/4910373-circle-i-think-the-stablecoin-revolution-has-a-clear-winner]
* Revolut's U.S. bank to offer FDIC-insured products, stablecoins [https://seekingalpha.com/news/4600177-revoluts-us-bank-to-offer-fdic-insured-products-stablecoins---report]