Open Standard, a newly formed independent company led by Bridge co-founder Zach Abrams, has announced plans to launch a new U.S. dollar-backed stablecoin later this year.
The stablecoin, named Open USD, is backed by a consortium of more than 140 businesses, including financial giants Visa, Mastercard and Coinbase. The initiative aims to expand the adoption of stablecoins globally by addressing key challenges businesses face when scaling digital asset payments and settlements.
According to Open Standard, Open USD has been designed around three core principles: scale, economics and governance. Businesses will be able to mint and redeem the stablecoin without fees or artificial transaction limits, allowing the network to support high-volume usage.
The company also said that participating partners will share earnings generated from the reserves backing Open USD, after a small management fee is deducted to cover operational expenses.
Open Standard will oversee the stablecoin’s operations through a governance structure that includes a board made up of network partners.
“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,” said Open Standard founding CEO Zach Abrams.
“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,” he added.
Stablecoins are digital tokens designed to maintain a stable value by being tied to traditional currencies such as the U.S. dollar or euro. Although regulators worldwide have increased scrutiny of the sector, stablecoins continue to be used primarily within crypto markets to facilitate trading in digital assets rather than everyday payments.
The launch comes amid growing regulatory clarity for stablecoins in major markets. In the United States, President Donald Trump last year signed the GENIUS Act into law, establishing federal rules and guidelines for stablecoins. The legislation was widely viewed as a major step toward encouraging broader crypto adoption and enabling digital assets to be used more widely for payments and money transfers.
Meanwhile, in the United Kingdom, the Financial Conduct Authority (FCA) recently eased proposed capital requirements for stablecoin issuers. Under the revised proposal, issuers would be required to hold capital equal to 1% of the total value of issued stablecoins, down from the previously proposed 2%.
Industry leaders believe the Open USD initiative could accelerate the next stage of digital asset growth.
“A stablecoin with neutral governance and shared economics is a unique combination that has potential to unlock the next phase of digital assets growth,” said Carolyn Weinberg, Chief Product and Innovation Officer at BNY.
