Open USD: Revenue-sharing model intensifies stablecoin competition; the key question remains whether it can drive a leap in adoption

Overview

This issue of Digital Assets Pulse focuses on the launch of Open USD (OUSD) by the Open Standard consortium. The consortium includes participants such as BlackRock, Visa, Mastercard, Stripe, and Coinbase, and plans to issue a USD-pegged stablecoin while lowering the barrier to enterprise adoption through zero minting/redemption fees, no quantity limits, and sharing reserve yields with partners. HSBC views this event as an important development in the stablecoin ecosystem, but emphasizes that its business model is not entirely original; the key question is whether it can truly drive institutional and enterprise adoption of stablecoin payment rails.

Core views

The report has three core views. First, compared with USDT and USDC, OUSD’s main difference is that more reserve yield flows to distribution partners rather than being retained by the issuer, but this model has already appeared in consortium stablecoins such as USDG. Second, OUSD will intensify stablecoin competition, particularly by potentially challenging Circle/USDC’s revenue model and affecting the partnership incentives between Coinbase and Circle. Third, the most important question is not whom it displaces in the short term, but whether OUSD can expand the real-world use of stablecoin infrastructure in payments, financial markets, and enterprise software.

Analysis framework

The report analyzes OUSD along three main lines: innovation, competition, and adoption. It first compares its yield distribution and fee structure with those of USDT, USDC, and USDG, then evaluates its impact on the incentives of existing stablecoin issuers and distribution partners, and finally examines whether stablecoins can expand beyond crypto trading use cases into broader commercial payments and financial infrastructure.

Methodology notes

• Thematic analysis frameworkInnovation-Competition-Adoption Framework

  Assess OUSD from three dimensions: business model innovation, impact on the competitive landscape, and real adoption potential.

  HSBC does not only examine whether OUSD’s yield-sharing mechanism is novel; it also compares it with USDG, USDT, and USDC, and ultimately bases its judgment on adoption rates: if consortium partners embed OUSD into products and payment workflows, the impact may spread across the entire stablecoin ecosystem; if there is only revenue sharing without demand growth, the impact may be limited.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Open USD (OUSD)

  Core subject of analysis; the USD-pegged stablecoin planned by Open Standard

  Strengths

  Has 140+ partners spanning payment networks, technology platforms, banks, asset managers, and crypto infrastructure; zero minting/redemption fees and shared reserve yield.

  Weaknesses

  Not expected to launch until later in 2026, and real adoption remains unproven; the consortium yield-sharing model is not a first-of-its-kind innovation.

  Comparison

  Compared with USDT and USDC, it places more emphasis on distributor economics; compared with USDG, OUSD has a broader partner base and is more oriented toward traditional finance and enterprise applications.

  Risks

  It may struggle to break through the network effects of existing stablecoins; regulation, reserve management, redemption mechanisms, and partner execution will all affect implementation.

• USDT

  Major existing stablecoin and a competitive benchmark for OUSD

  Strengths

  The report notes a market cap of about USD185bn, with strong network effects and existing liquidity.

  Weaknesses

  Reserve yield is mainly retained by the issuer, in contrast to OUSD’s partner revenue-sharing model.

  Comparison

  OUSD is trying to win distribution channels through revenue sharing and a zero-fee mechanism, but USDT’s scale advantage is clear.

  Risks

  Faces long-term competition from consortium stablecoins, regulatory frameworks, and the narratives around potential CBDCs/digital euro.

• USDC

  Major existing stablecoin, tied to Circle and Coinbase partnership incentives

  Strengths

  The report notes a market cap of about USD74bn and an existing ecosystem distribution base including Coinbase.

  Weaknesses

  OUSD’s reserve yield-sharing model directly challenges Circle’s model of retaining reserve yield; Coinbase’s participation in OUSD could alter its incentive to promote USDC.

  Comparison

  Compared with USDC, OUSD puts greater emphasis on distributing economic benefits to partners; the market has already reacted negatively to Circle’s share price.

  Risks

  Potential risks include renegotiation of partnership terms, changes in distribution incentives, and growth being diverted by new consortium stablecoins.

• USDG / Global Dollar Network

  Leading comparison for the consortium stablecoin business model

  Strengths

  Already has 130+ partners and has used a model of redistributing reserve asset yield to consortium partners since launch.

  Weaknesses

  The report notes its market cap is about USD3bn, far below USDT and USDC, showing that yield sharing does not necessarily drive a surge in demand.

  Comparison

  OUSD is similar in model to USDG, but OUSD’s partner mix is broader, including more traditional finance, payments, and enterprise technology companies.

  Risks

  If OUSD proves the consortium model effective, USDG may benefit as well; conversely, USDG’s scale bottleneck may also serve as a warning for OUSD.

• Coinbase

  Participant in Open Standard and also a partner in promoting USDC

  Strengths

  Has trading platform distribution capabilities and digital asset user reach, which could help OUSD gain liquidity and usage scenarios.

  Weaknesses

  Participation in OUSD may create an incentive conflict with its existing USDC partnership.

  Comparison

  The report suggests Coinbase may be incentivized to promote a competitor to USDC, or use this as leverage to renegotiate partnership terms with Circle.

  Risks

  Strategic trade-offs, regulatory approvals, and product rollout timing will affect how it allocates resources between OUSD and USDC.

Key data

• Open Standard participants140+ companiesConsortium members include BlackRock, Visa, Mastercard, Stripe, and Coinbase, among others, and plan to launch OUSD later in 2026.
• OUSD minting and redemptionNo fees, no quantity limitsThis design aims to lower the practical barrier for enterprises to use stablecoins.
• OUSD reserve yield arrangementShared with partners after deducting management feesThe yield flow is tilted more toward stablecoin distributors rather than being fully retained by the issuer.
• USDG reference sample130+ partners; market cap about USD3bnThe report argues that USDG has already adopted a similar consortium yield redistribution model, so OUSD is not an entirely new business model.
• Scale of major existing stablecoinsUSDT about USD185bn; USDC about USD74bnExisting stablecoins have significant network effects, making short-term displacement difficult.
• Stablecoin market growth over the past yearAbout 25%Despite high regulatory and market attention, stablecoin demand remains mainly constrained by crypto trading activity.
• UK FCA crypto framework authorization window2026-09-30 to 2027-02-28The FCA’s final rules cover trading platforms, custody, stablecoin issuance, lending, staking, and certain DeFi models.
• BoE stablecoin framework adjustmentsTemporary issuance cap of GBP40bn for a single systemic stablecoin; up to 70% of reserves may be held in short-term UK government bondsThe BoE removed previous holding caps for individuals and corporates, while maintaining the requirement for redemption at par within 24 hours.

Impact & implications

OUSD could reshape the distribution of economics in the stablecoin value chain by shifting reserve asset yield from issuers to distribution partners, thereby encouraging payment networks, trading platforms, banks, asset managers, and enterprise software companies to participate in promotion. However, the report also notes that yield sharing alone may not be enough to produce a sharp increase in adoption, and USDG’s smaller scale shows that the consortium model still needs validation through real application scenarios. If OUSD successfully drives the adoption of stablecoins as payment rails for enterprises and consumers, projects such as USDT, USDC, USDG, and Qivalis could all benefit; if it fails to break through existing network effects, its impact may be reflected more in competitive narratives and repricing of partnership terms.

Risks

• OUSD’s revenue-sharing model is not entirely new, and USDG’s smaller market cap shows that the consortium model does not necessarily produce a leap in adoption.
• USDT and USDC have strong network effects, and stablecoin demand directly reflects user preference for specific tokenized currencies, making substitution difficult.
• Stablecoins are still mainly used for cryptocurrency trading; if trading markets weaken, demand for additional stablecoins may be constrained.
• The US CLARITY Act, the division of regulatory responsibilities between the SEC and CFTC, UK FCA/BoE stablecoin rules, and progress on the EU digital euro could all reshape the competitive landscape.
• If reserve asset management, redemption arrangements, customer disclosures, and financial stability requirements are poorly executed, stablecoin project expansion may be constrained.

What to watch

• Whether OUSD launches as planned later in 2026, and which partners deliver the first real product integrations.
• Whether participants such as BlackRock, Visa, Mastercard, Stripe, and Coinbase embed OUSD into payments, trading, enterprise software, or financial market workflows.
• Whether the partnership terms or promotional incentives between Circle and Coinbase are adjusted because of OUSD’s emergence.
• Whether USDG’s market cap and partner adoption improve in tandem as OUSD boosts the consortium stablecoin narrative.
• Progress in the US Senate on the CLARITY Act, and the final arrangement for regulatory responsibilities over digital assets between the SEC and CFTC.
• The UK FCA authorization window, the BoE’s final stablecoin framework, EU digital euro pilots, and related CBDC developments.