Visa, Mastercard, and a 140-Company Consortium Launch 'Open USD' Stablecoin — Coinbase Slides 3.6% After Hours

A consortium of more than 140 tech and financial heavyweights — including Visa, Mastercard, Stripe, and Coinbase — formally announced the launch of a new stablecoin project called "Open USD" on Tuesday (June 30). The news triggered sharp market reactions: as of after-hours trading on June 30, Coinbase (COIN) closed at $146.19, down 3.60% (-$5.46) from the prior close of $151.65, hitting an intraday low of $142.3. Meanwhile, Circle Internet Group (CRCL), the issuer of the USDC stablecoin, saw its shares crater 16.86% on the day.^{[Barron's][Yahoo Finance]}

Giant Consortium Builds an 'Open' Stablecoin Standard

Open USD is described as a "truly open" dollar-pegged crypto token, governed by an independent company called Open Standard, whose board is composed of representatives from the consortium's member companies.^[Gizmodo] According to Gizmodo, Open Standard is led by CEO Zach Abrams, who previously co-founded a stablecoin startup that was acquired by Stripe last year.^[Gizmodo]

DoorDash co-founder Andy Fang said in a statement for Open USD: "What makes Open USD different is that it's truly open: no single company controls it, and the partners building on top of it all have a voice. This is the right foundation for moving money for everyone."^[Gizmodo]

According to the project's description, Open USD's dollar reserves will be held by Open Standard and made available to partners after deducting a management fee to cover operational costs. Additionally, minting and redemption of the stablecoin will be free of charge.^[Gizmodo]

Market Reaction: Circle Craters, Coinbase Under Pressure

The launch of Open USD directly threatens the market position of existing stablecoin issuers. Barron's reported that USDC — the stablecoin jointly issued by Circle and Coinbase — is a direct competitor to this new project. Following the announcement, Circle Internet Group (CRCL) shares plunged 16.86% on the day.^[Barron's]

Coinbase, though a member of the Open USD consortium, also saw its shares come under pressure. After the close, Coinbase (COIN) traded at $146.19, down 3.60% from the prior close.^{[Yahoo Finance]} Notably, Coinbase confirmed on X that Open USD will launch first on its incubated Base blockchain.^[Gizmodo]

Regulatory Landscape and Historical Context

The launch of Open USD draws comparisons to Meta's (then Facebook) 2019 attempt to launch the Libra project (later renamed Diem). Gizmodo notes that Libra ultimately collapsed under broad opposition from lawmakers and regulators. However, the crypto regulatory environment has shifted dramatically under the Trump administration — the GENIUS Act, passed last year, provided partial regulatory clarity for U.S. stablecoins.^[Gizmodo]

Notably, Meta is absent from Open Standard's partner list. Gizmodo reported that Meta was reportedly planning to re-enter the crypto space earlier this year with a stablecoin integration, which may explain its absence.^[Gizmodo]

Multi-Chain Support and Outlook

In terms of blockchain support, Open USD plans to launch on multiple chains. Beyond Coinbase's Base, Plasma, Ripple, and Solana have all indicated they will support Open USD on their respective networks.^[Gizmodo]

The crypto industry is increasingly consolidating around stablecoins. Tether's USDT stablecoin is now vying with Ethereum's ether for the title of the second-largest cryptocurrency by market cap. Meanwhile, Coinbase is increasingly pushing users toward its Base blockchain, from which it collects all associated transaction fees as revenue.^[Gizmodo]

Open USD is expected to go live later this year. The market will be watching closely to see how it reshapes the stablecoin landscape.

This content is for informational purposes only and does not constitute investment advice, trading advice, or any guarantee of returns.