Visa, Mastercard, and Coinbase launched a stablecoin called Open USD, tied to the US dollar. The initiative aims to enhance global stablecoin usage and creates a consortium of over 140 businesses to support this effort.
Visa, Mastercard, and Coinbase announced the creation of a new stablecoin titled Open USD, which is pegged to the US dollar. This initiative, branded as Open Standard, includes a consortium of over 140 businesses committed to facilitating global stablecoin adoption. Expected to launch later this year, Open USD aims to provide a stable alternative for transactions in the internet economy.
The purpose behind the Open Standard is to address the needs of businesses seeking an open, low-cost, and high-throughput digital currency solution. According to Open Standard CEO Zach Abrams, existing stablecoins, while strong, need to be aligned with the economic interests of these businesses for widespread adoption.
The launch of Open USD comes in the context of supportive regulation for stablecoins, following the enactment of the GENIUS Act. This new law requires stablecoin issuers to maintain a 1:1 reserve backing for their coins and establishes rules for anti-money laundering and consumer protections, enhancing the regulatory landscape for digital currencies.
While Open USD is positioned as a safer option within the crypto environment, the overall market remains volatile. Major cryptocurrencies, including Bitcoin, have seen significant price fluctuations, underscoring the challenges consumers face when navigating the broader crypto space. The emerging stablecoins, like PayPal's PayPal USD and now Open USD, could potentially provide a more stable currency alternative for everyday transactions.
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Visa, Mastercard, and Coinbase launched a stablecoin called Open USD, tied to the US dollar. The initiative aims to enhance global stablecoin usage and creates a consortium of over 140 businesses to support this effort.