Visa, Mastercard consortium launches new global stablecoin

• Open USD will allow businesses to mint and redeem the stablecoin without fees or volume limits, with reserve earnings shared with participants to incentivize adoption
• The venture brings together more than 140 businesses and emphasizes neutral governance, positioning itself as an open, low-cost, high-throughput alternative to existing stablecoins
• Despite regulatory progress through the GENIUS Act, stablecoins remain primarily used for crypto trading rather than mainstream payments and money transfers

Summary

Key Development:

Visa, Mastercard, and Coinbase launched a new stablecoin consortium called "Open Standard" on June 30, bringing together over 140 businesses to issue "Open USD," a U.S. dollar-pegged stablecoin expected to go live later this year.

Main Objectives:

The initiative aims to accelerate global stablecoin adoption by addressing key business scaling challenges. Open Standard will allow businesses to mint and redeem Open USD without fees or volume limits, with earnings from the token's reserve backing shared among participants.

Market Context:

According to CEO Zach Abrams, while existing stablecoins have strengths, businesses require solutions that are "open, low-cost, high-throughput, broadly accessible" for scaled operations. Currently, stablecoins are predominantly used for crypto trading rather than everyday payments and money transfers.

Regulatory Environment:

The launch follows President Donald Trump signing the GENIUS Act into law, establishing the first federal framework for stablecoins in the U.S. Experts believe this legislation could facilitate mainstream adoption of digital assets for payments and money movement.

Competitive Landscape:

The article notes that other fintech and crypto firms have announced plans to launch a competing global stablecoin network called "Global Dollar Network," indicating growing industry interest in this space.

Market Implications:

This consortium represents a significant push by traditional payment giants into the cryptocurrency space, potentially legitimizing stablecoins for mainstream business use. The involvement of Visa and Mastercard—dominant players in global payments—could accelerate institutional adoption and bridge traditional finance with digital assets, though widespread payment usage remains to be proven.