Open Standard stablecoin announces its arrival.
Open Standard has announced its arrival to the stablecoin scene as it officially launches and names OpenUSD as its US Dollar stablecoin. This is a joint initiative from leading stablecoin, digital asset companies, and banking institutions to spread stablecoin adoption worldwide.
At the held of this initiative are names that people reading about the space for some time should already know: Visa, Stripe, Bridge, Coinbase, and what is interesting that Open Standard also comprises large TradFi players and banks, such as BBVA, BlackRock, Shinhan Financial Group, as well as tech giants like Google and Samsung.
With many digital asset providers, exchanges, banks, and legacy financial partners comprising its governance, this is perhaps the strongest network of actors gathering for a joint stablecoin network to date. Leading this effort is Zach Abrahams who previously co-founded Bridge (later acquired by Stripe and integrated with Tempo) a leading custom stablecoin issuance and orchestration provider.
The concept is fairly simple; top tier companies and financial institutions team up to scale stablecoin transfers to the same standard (in terms of volume think trillions, not billions) and compliance required to move money across key sectors every single day.
In fact, it draws inspiration from the Global Dollar Network created by Paxos, which lead the network model and ensured that there is distribution of stablecoin rewards gained from reserves and % of volume of transferred within the network.
Other features curated for regular large stablecoin transactions includes a reduction in mint and burn fees.
In general, this is a more lucrative offering to institutions and corporate entities as they get to keep the economics but won’t have to spend too much time curating their own stablecoin infrastructure designs and integrations that typically requires a lot more than meets the eye.
With a launch aimed for later this year, it remains to be seen if OpenUSD can catch up to top stablecoin issuers Tether and Circle over the next few years.
