Summary
- CoinShares stated Open USD directly challenges Circle by giving partners income generated by reserves backing the stablecoin, undermining USDC’s distribution economics.
- Open USD comprises more than 140 companies, including BlackRock, Coinbase, Mastercard, Stripe and Visa. The stablecoin is expected to debut in the second half of 2026.
- Despite the threat, CoinShares stated USDC’s established liquidity and integrations could prove difficult for any newcomer to replicate.
Open USD, a bank-backed group developing a dollar-pegged stablecoin, is the most credible threat yet to Circle Internet’s (CRCL) USDC because it targets the economics at the heart of the company’s business, crypto asset manager CoinShares stated in a Monday report.
Unlike traditional stablecoin issuers, who keep the income generated by their reserves, Open USD plans to distribute the yield to participating businesses, retaining only a management fee. CoinShares stated the model could squeeze Circle’s margins while raising the cost of maintaining USDC distribution.
“If successful, Open USD could push stablecoins further into mainstream payments by making the economics and governance more attractive for the businesses actually using them,” wrote analyst Luke Nolan.
Developed by Open Standard, the institutional-focused stablecoin is backed by a consortium of more than 140 companies, including BlackRock (BLK), Coinbase (COIN), Mastercard (MA), Stripe and Visa (V), and is targeting a second-half 2026 launch. Key details, including its reserve structure and fee model, remain undisclosed.
The model also strengthens Coinbase’s hand ahead of the Aug. 18 renewal of its revenue-sharing agreement with Circle, under which the exchange receives roughly half of USDC’s reserve income, the report stated.
