140+ Firms Back OUSD to Challenge Circle and Tether

Summary

• Over 140 companies, including Visa, Mastercard, and Coinbase, formed a consortium to launch OUSD as a revenue-sharing stablecoin aimed at global payments.
• OUSD provides free issuance and redemption with no limits and runs natively on Solana, arriving amid record stablecoin volumes.
• Coinbase's involvement marks a notable shift from its USDC origins, though USDC retains advantages from long-standing integrations and regulatory infrastructure.

The conference room in mid-2026 still hummed with the low murmur of side conversations as the final slides faded from the screen. Representatives from payment giants and crypto exchanges lingered near the stage, their badges catching the overhead lights. One executive tapped a colleague on the shoulder and nodded toward the projected logo of the new Open USD consortium. The moment felt less like a product reveal and more like the quiet acknowledgment that the stablecoin map was about to be redrawn.

Background

More than 140 firms decided the time had come for a shared alternative in the stablecoin space, so the consortium behind OUSD began taking shape. Coinbase, which helped build USDC through its partnership with Circle, stepped into a founding role alongside Visa and Mastercard. This move arrived as stablecoin transaction volumes surpassed those of traditional card networks in prior years, setting the stage for fresh competition. Which, if you've been watching this space, shouldn't be surprising.

The project's origin reflects a calculated hedge. Coinbase's prior work on USDC gave it deep familiarity with issuance mechanics and compliance rails, yet the firm chose to back an asset positioned as an alternative. Coverage of the development noted that the pivot supplies Coinbase with a powerful option precisely when its existing arrangements with Circle face new dynamics.

"Coinbase's pivot toward a founding role in OUSD gives it a powerful alternative asset exactly when its current contract with Circle is under scrutiny."

, CoinMarketCal (Source)

Early milestones included confirmation that OUSD would support free issuance and redemption without limits. The stablecoin was also slated to launch native on Solana, a choice that aligned with growing enterprise interest in lower-cost rails for high-volume transfers.

The Path to Launch

OUSD is scheduled to go live later in 2026, with plans to expand to additional chains including Base. The consortium has emphasized zero-fee minting and redemption as core features, alongside a revenue-sharing model intended to distribute value across participating firms. This structure differentiates it from established issuers that retain more of the economics from reserves and transaction flows.

Current positioning places OUSD directly against USDC and Tether in the global payments arena. USDC has already processed nearly $30 trillion in on-chain volume during Q1 2026 alone, illustrating the scale any newcomer must confront. At the same time, the broader market context shows stablecoin activity continuing to climb, with volumes exceeding combined Visa and Mastercard figures from 2024.

"USDC's decade-long network of integrations, liquidity and regulatory infrastructure gives it a structural advantage over new stablecoin entrants."

, Circle CEO, via TradingView (Source)

Circle shares experienced a slump following the announcement, though analysts have described the reaction as potentially overstated given USDC's entrenched advantages. New entrants still confront significant adoption hurdles rooted in existing network effects and liquidity pools.

Industry Impact

The arrival of OUSD underscores a broader shift toward collaborative models in stablecoin infrastructure. By pooling resources across payments processors, exchanges, and other enterprises, the consortium aims to accelerate enterprise-grade adoption where single-issuer approaches have dominated. This could pressure margins and force innovation in fee structures across the sector. And honestly, that shift matters more than it might seem at first.

For Coinbase specifically, participation signals a strategic diversification away from sole reliance on one flagship stablecoin. The move arrives at a moment when machine-to-machine payment protocols and cross-border use cases are expanding, creating openings for assets that emphasize flexibility and shared economics.

• OUSD's zero-fee model and Solana-native design target cost-sensitive, high-throughput applications.
• Established players like USDC benefit from regulatory clarity and deep integrations built over years.
• Market participants will watch whether the consortium's collective reach can overcome first-mover advantages held by Tether and Circle.

What once looked like routine industry chatter at that conference now carries sharper stakes. The executives who paused by the stage were not merely endorsing another token. They were signaling willingness to reshape the rails on which trillions in stablecoin value already move. As the launch window in late 2026 draws closer, the outcome will test whether shared ownership can meaningfully challenge assets that have already secured dominant positions through scale and time.