Open USD Poses Biggest Threat Yet to Circle's USDC, CoinShares Says
A consortium-backed stablecoin, Open USD, plans to share reserve income with partners rather than keeping it with the issuer, potentially squeezing Circle's margins if it launches in 2026.
A new stablecoin called Open USD, backed by a consortium, is set to challenge Circle's USDC. Unlike USDC, which retains reserve income for Circle, Open USD plans to share this income with its partners, potentially pressuring Circle's margins.
According to CoinShares, Open USD's unique model could make it a formidable competitor if it launches in 2026. This move could significantly alter the stablecoin market, which has been dominated by Circle's USDC and Tether's USDT.
For everyday users, this could mean more competition and potentially better terms for stablecoin holders. If Open USD gains traction, it might offer lower fees or higher returns on reserves, benefiting users who hold or transact with stablecoins.
Watch for the official launch of Open USD and how it performs against established stablecoins like USDC and USDT. The success of Open USD could prompt other stablecoin issuers to adopt similar models, increasing competition in the market.