● Covered by 1 source · 1 reportHigh impact
Visa, Mastercard, and Coinbase Announce New Global Stablecoin Open USD
Key points
- Open USD is tied to the US dollar to minimize volatility.
- Over 140 businesses collaborate under the Open Standard consortium.
- The initiative follows regulatory changes from the GENIUS Act.
Launch of Open USD
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.
Objective of Open Standard
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.
Regulatory Context
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.
Impact on the Crypto Landscape
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.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
Reporting from
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.