The new stablecoin Open USD (OUSD), backed by a consortium of over 140 major companies, will launch on Ethereum from day one, Ethereum Institutional announced on July 30. The consortium includes global payment giants Visa, Mastercard, Stripe, asset management titan BlackRock, custody bank BNY, crypto exchange Coinbase, and money transfer service Western Union. Open USD is developed by Open Standard, an independent entity designed to govern the stablecoin through a consortium model that avoids single-issuer control.
The stablecoin aims to differentiate from incumbents like USDT and USDC by sharing income generated from reserve assets with ecosystem partners—businesses that distribute and use OUSD—rather than concentrating revenues with the issuer. Additionally, partners will be able to mint and redeem the stablecoin without fees or artificial volume limits, creating a business-friendly on-ramp. This model is primarily aimed at corporate settlement, cross-border treasury operations, payment processors, and institutional liquidity, meaning end consumers might not interact with OUSD directly.
Ethereum was chosen because it offers a neutral, shared settlement network without control by any single participant, crucial when competitors like Visa and Mastercard are on the same infrastructure. The network’s established liquidity, mature infrastructure, and institutional familiarity make it suitable for high-value settlement. While Ethereum fees can be high, businesses can reduce costs by batching transactions or routing smaller payments through other supported chains. Ethereum Institutional emphasized the stablecoin’s multichain approach, but the day-one launch on Ethereum underscores its role as the primary institutional settlement layer.
Fundstrat co-founder Tom Lee described the move as "validation that after 11 years one blockchain reigns supreme for the future of finance." The news was shared by Ethereum Institutional on social platform X, with the tweet: "Breaking: Open USD will launch on @ethereum on day one. Over 140 businesses, including Visa, Mastercard, Stripe, BlackRock and BNY. All reserve earnings flow to the partners that grow it. A shared asset needs neutral ground."
