Open Standard, a new independent company led by stablecoin infrastructure company Bridge co-founder Zach Abrams, is preparing to launch a new stablecoin.
Backed by more than 140 businesses including Visa and Mastercard, the venture will issue a US-dollar pegged stablecoin called Open USD later this year.
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
In a statement, the company said Open USD is based on “three design principles” focused on scale, economics and governance. It said businesses will be able to mint and redeem Open USD at “no cost” and without artificial volume limits, while partners will receive earnings generated from Open USD’s reserves after deducting a small management fee to cover operational costs.
Open USD will be operated by Open Standard, with a board made up of Open USD’s partners.
Open Standard founding CEO Zach Abrams said: “Existing stablecoins have great strengths, but to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests.
“We’re thrilled to bring together over 140 businesses to launch Open USD. It’s a stablecoin built for the internet economy, designed by the businesses growing it.”
Stablecoins are digital tokens designed to maintain a stable value and are typically backed by traditional currencies such as the US dollar or euro. Despite increased regulatory attention, stablecoins are still largely used within crypto markets to support trading in other digital assets and are not yet widely used for everyday payments.
In the UK, the Financial Conduct Authority (FCA) recently reduced proposed capital requirements for stablecoin issuers.
Under the updated proposal, stablecoin issuers would need to hold capital equal to 1% of the total value of stablecoins they issue, down from 2% in earlier plans.
