Open Standard says its new stablecoin, Open USD, is designed to let partners retain reserve income and remove minting fees, positioning the product as a direct challenge to Circle’s USDC.
Open USD at a glance
Open USD is presented as a U.S. dollar–pegged stablecoin intended for use by platforms and service providers that integrate stablecoins into payments, trading, and on-chain finance. By altering how revenue from reserves and fees is distributed, Open Standard aims to make the stablecoin’s economics more favorable to distribution partners.
Revenue model and fees
- Reserve income: Open Standard says partners will be able to keep the income generated from reserves that back Open USD. In most stablecoin models, reserve interest is a primary revenue source for the issuer.
- Minting fees: The company also indicates it plans to eliminate minting fees, a cost that can affect institutional users and on/off-ramps when creating new tokens.
Competitive context
The initiative targets a core point of differentiation with Circle’s USDC, one of the largest dollar-backed stablecoins. USDC’s model has historically centered on the issuer retaining reserve income, with distribution and fee structures varying by partner and use case. By shifting economics toward partners, Open Standard is seeking to attract exchanges, fintechs, and on-chain applications that drive stablecoin adoption.
What to watch
- Transparency and oversight: Market acceptance typically depends on clear disclosures about reserve composition, custody, audit frequency, and redemption mechanics.
- Regulatory compliance: Licensing, compliance frameworks, and jurisdictional coverage remain critical in stablecoin issuance and distribution.
- Ecosystem integrations: Exchange listings, wallet support, on/off-ramps, and developer tooling will influence liquidity and utility.