Woofun AI reports that Open Standard has unveiled Open USD (OUSD), a dollar-pegged stablecoin backed by over 140 companies including Visa, Mastercard, Coinbase, Ripple, OKX, and Bybit. This initiative enables participating businesses to mint tokens at no cost without artificial volume limits while retaining all earnings generated by the underlying reserves.

Rhino.fi co-founder and CEO Will Harborne emphasized that coordination among giants like Visa, Stripe, Mastercard, Coinbase, and Google sends an unmistakable signal regarding the project's potential. He noted that OUSD represents the first launch with a genuine chance to capture market share from USDT and USDC because reserve revenue flows directly back to holders, though this incentive structure may drive industry fragmentation.

The emergence of OUSD poses a direct challenge to Tether's USDT and Circle's USDC, which currently dominate the sector by market capitalization. Market reaction was immediate, with the share price of Circle Internet Group dropping more than 16% on Tuesday to close at $63.63.

Open Standard confirmed that OUSD will launch later this year, entering a stablecoin market currently valued at more than $312 billion.

Woofun AI data shows the sector is projected to expand significantly, potentially reaching up to $4 trillion by 2030.

Circle CEO Jeremy Allaire stated that the company welcomes continued innovation and competition, pledging to soon expand support for both US dollar-pegged and non-US dollar stablecoins. He added that the firm remains laser-focused on building the best stablecoin infrastructure possible despite the new competitive pressure.

Regulatory tailwinds support this growth trajectory after US President Donald Trump signed the GENIUS Act into law last year to establish a framework for payment stablecoins. Experts anticipate that once federal authorities finalize implementation regulations, the legislation will pave the way for easier issuance and acceptance of digital assets. This marks a pivotal moment where institutional coordination directly targets the revenue models of incumbent issuers.