Open USD and the Questions 140 Logos Don’t Answer

On June 30, an independent company called Open Standard launched a dollar stablecoin, Open USD, and 140 of the biggest names in money signed on. Visa. Mastercard. BlackRock. BNY. Coinbase. Stripe. Circle’s stock fell as much as 17% the same day, which tells you the market read this as more than a press release.

I read the launch and thought about Juliet, on the balcony, saying two things to Romeo that echo in my head. “What’s in a name?” And then the answer she talks herself into: “a rose by any other name would smell as sweet.”

What’s in a Name?

OUSD is billed as an independent consortium. A governance board, 140 partners, no single owner. Lift the hood and the infrastructure says something else.

Stripe co-incubated Tempo, an L-1 blockchain that OUSD runs on. The engine that mints OUSD, handles the banking integrations and runs the contracts is Bridge, the stablecoin firm Stripe bought for $1.1 billion. Open Standard’s founding CEO, Zach Abrams, also runs Bridge. Onboarding runs through Privy, another Stripe acquisition. And Stripe has already said OUSD will be the default stablecoin for the millions of businesses on its platform.

Independent in governance. Stripe in nearly every layer that moves the money.

OUSD is billed as an independent consortium. Lift the hood and the infrastructure says something else.

That doesn’t make it less credible. It makes it a serious, ambitious bet aimed at a real problem, placed by a company with a stake in every layer of the rail and enough distribution to seed adoption before the coin even goes live.

Read More: Open USD’s Biggest Challenge Isn’t Circle or Tether, It’s History

Most of the skepticism I’ve read is trained on one question. Does OUSD crush Circle? That’s a fair fight to watch. It isn’t mine. Mine is whether a standard built this way, convened by this company, can get adopted at all. That’s the question frameworks are built for.

Everyone Is Chasing the Same Money Movement Prize

Every serious player wants the same prize. Money that moves in real time, everywhere, all the time, not at banker’s hours. Domestically, we’ve made great strides. In the U.S. RTP® settled $1.3 trillion in 2025, up 428%, across 1,100+ banks, and just raised its limit to $10 million. FedNow reaches about 40% of demand deposit accounts. Both clear in seconds, around the clock, for pennies. It took RTP® a decade, which is sort of the point. Getting thousands of banks and millions of users on board takes time, a business model and use cases that drive ubiquity.

The hard part is what’s left. Cross-border, always-on interoperability across all those domestic islands. That’s where the money and the innovators are aiming. SWIFT has a new retail scheme with 50+ banks and a shared ledger in development for mid-2026. The BIS-led Project Agorá has seven central banks and 40 institutions on tokenized settlement. J.P. Morgan and Citi, with Citi Token Services, are building their own global networks connecting nostro partners with atomic tokens and fiat-to-fiat settlement.

Here’s what that last example makes plain, and it’s the thing the coin narrative skips. You don’t really need a stablecoin to clear and exchange fiat across borders. Citi’s approach proves it. Tokenized deposits move a regulated bank dollar 24/7, cross-border, with no new instrument for anyone to hold, no float to redistribute, and no coin to get past a central bank. If the goal is fast fiat that clears and settles globally, a coin is one way to do it. Not the only way. And some might argue not the cleanest.

That’s all to say that it’s a crowded field where contenders are serious, well-funded, all aimed at the same target. OUSD is one entry. An impressive one. The question is whether it’s a contender or a cul-de-sac.

Three Contenders, One Real Fight

Three forms of digital money are competing for the frontier: stablecoins, tokenized deposits and wholesale CBDCs. Stablecoins are the topic du jour, dominated by USDC and USDT even though 95%+ of stablecoin volume is still crypto trading, not real-economy payments. Tokenized deposits are the banks’ answer. A dollar that stays a bank liability, inside the regulated perimeter, but moves like a token. Wholesale CBDCs push the same idea up to central bank money.

If the goal is fast fiat that clears and settles globally, a coin is one way to do it. Not the only way.

Read More: Tokenized Deposits Steal Stablecoin Buzz — and the Business Model

The fight underneath is OUSD’s make-or-break. Does real-time money run over public rails, operated by new issuers who sit outside the banking system? Or over private rails run by banks and networks, modernized but still inside the regulated system? Stablecoins push the first answer. Tokenized deposits and the SWIFT ledger push the second. The GENIUS Act gave the first real legs and drew in names like BlackRock. But legitimacy isn’t direction. The industry hasn’t decided. OUSD is a bet on the public-rail answer. And central banks get a vote. Ask Brazil, where dollar stablecoins got pushed out of the regulated cross-border payment rail.

What OUSD Actually Is

The coin part is easy to understand. A fully-reserved dollar stablecoin, minted and redeemed with no fees, where the float that a single issuer normally pockets gets shared back to the partners driving adoption. Governance sits with a board. It launches later in 2026 on multiple chains including Tempo.

The stack lines up under one company at nearly every layer. Chain, issuance, onboarding, default distribution. The consortium governance is a real design choice, not a press-release facade. But the 140 partners are building on infrastructure one company largely controls. That’s a different thing from a standard the members built together.

Which raises a basic question. Is OUSD meant to be the real-time rail everyone converges on? Or one more rail in a crowded field, owned by the platform best positioned to fill it? Stripe is an orchestrator. It already routes a transaction over cards, ACH, bank rails, or a stablecoin, picking per transaction. A company that can route anywhere doesn’t need a single winning rail. It needs to own a good one and steer volume into it. So OUSD may be less “one rail to rule them all” and more “own the map and hold the wheel.”

The consortium governance is a real design choice, not a press-release moment.

Read More: Open USD Just Turned the Stablecoin Race Into an Ecosystem Contest

That then makes the coin the bait that pulls businesses into Stripe’s orchestration stack. Where the control actually lives. But even an orchestration play needs a payment method that gets held and merchants that accept, or there’s nothing to orchestrate.

Why Standards Are the Hardest Thing to Launch

A payment standard is worth nothing until many parties adopt it at once, and the parties who have to adopt usually have the least reason to move. Merchants won’t take it until customers use it. Customers won’t use it until merchants accept it. Issuers won’t build it without acceptance and incentives. Everyone waits on everyone. This multi-sided coordination problem has killed far more standards than bad technology ever has.

Read More: Real-Time Payments Adoption Lags Behind Expectations

Getting past it takes clearing two tests. Is adoption at scale even mechanically possible in the time you have? That’s FIT — Friction, Inertia, Time. And is the network built so every party has a concrete reason to show up? That’s Ignition.

FIT: One Strong Leg, Two Weak Ones

Friction is OUSD’s real asset. Stripe can toggle acceptance on for its enormous merchant base without those merchants doing much of anything. Payments fold into an existing integration, settle directly, customer authenticates from their own wallet. That’s a friction advantage almost no challenger has, and it’s arguably OUSD’s single strongest card. Especially since Stripe has said that OUSD will be its default coin.

But friction is multi-sided. Wallets still have to hold the coin. Consumers still have to fund and use it. Treasury teams still have to reconcile and book it. A merchant ready to accept a coin few consumers hold is a toll booth on an empty road. Low where Stripe controls it, unresolved everywhere else.

A payment standard is worth nothing until many parties adopt it at once.

Read More: Friction Fighters: How to Monetize Friction and Ignite Platforms in the Digital Economy

Inertia is harder, and it’s really one question. What is OUSD solving that incumbents aren’t already solving, at scale, in the time it takes OUSD to get off the ground? Visa launched Intelligent Commerce in 2025. Agents transacting over Visa’s rails, 100+ partners, OpenAI integrated, stablecoin settlement already running at roughly $7 billion annualized across nine chains, Tempo included. Mastercard built Agent Pay. The banks are building tokenized deposit networks. The incumbents aren’t lumbering or sleepy. They’re shipping answers on regulated rails that already have universal acceptance, mature fraud and dispute infrastructure and consumer protections. So OUSD has to be meaningfully better, not just newer and shinier.

The talk track then defaults to the “programmable money” premise. But let’s separate two things: programmability of the instrument (does the coin carry logic on-chain) from programmability of the decision (can software decide what to pay and execute it over modernized rails that we already have). AI increasingly delivers the second. The smarts live in the agent; the rail is a modernized version of the regulated environment that exists.  That doesn’t make a programmable token useless. It narrows where it’s essential to cases that genuinely need logic baked into the settlement asset. A real set, just narrower than the marketing may imply.

One part of that narrow set deserves more than a mention. Machine-to-machine payments. Agents paying agents, treasury to treasury, at machine speed, around the clock, cross-border, no human in the loop, no interchange to apply. It’s the strongest ground the stablecoin thesis stands on, because it’s the one place card and bank rails were never built to go. M2M is a rounding error in commerce today. But it’s the wedge. The back office, supplier to supplier, the corner no card network is defending, because there was never card volume there to defend. Adopt stablecoins where nobody’s guarding the door and you’ve built a live rail with real volume and a reason for the next use case to ride the same track. It may be viable not because it’s big, but because it’s the harmless-looking entry point.

M2M is the wedge, the harmless-looking entry point.

So the open question isn’t whether M2M settlement happens. It’s whether it needs a new payment method or just existing tokenized dollars moved smartly over modernized rails that already clear. Or whether Stripe defaulting its enterprise base into OUSD is how that wedge gets driven, one supplier payment at a time, right past the card networks on the board.

Read More: What Overcoming Inertia Tells Us About The Future of Physical Retail

Time is the third leg of the FIT stool, and it interlocks with the other two. In a multi-sided market you have a finite window to get all sides moving before early adopters drift back to what works. Or get behind the thing that is already working, understood and has a shot at real scale. That window is harder when the field is crowded. And worse here, because incumbents can extend their lead in the time it takes to coordinate 140-plus parties.

Ignition: One Clever Incentive, Pointed at One Party

Ignition is the deliberate design of incentives, technology, governance and business model so every party has a reason to show up. The classic benchmark in payments is the four-party card model. It ignited because the incentive design was complete. Issuers earn interchange and carry credit risk, acquirers get paid to connect merchants, the network sets rules and takes its fee, merchants reach every cardholder. Everyone has a role and a reason to play it.

Read More: The Creative Destruction and Rebuild of the Payments Business Model

OUSD’s core incentive is no transaction fees but a shared reserve yield. The float a single issuer normally keeps, distributed to the partners driving adoption. That’s a genuinely clever innovation aimed at the heart of the Circle and Tether business model. Both keep almost all the reserve income the whole ecosystem generates. Share it, and a distributor has a reason to pick OUSD over a coin that pays them nothing.

A shared reserve yield is a genuinely clever innovation aimed at the heart of the Circle and Tether business model.

Stripe would say owning the whole stack means coordination just makes for easier integration. They can make it work end to end on day one. True on the supply side. But the coordination problem that kills standards was never mostly supply-side. It’s demand-side. Getting rival issuers, competing networks, banks, and millions of merchants to adopt a rail a competitor controls. Owning the stack makes that harder, not easier, because the thing they build end to end is a thing their rivals now have a reason not to join. Stripe can build its own engine and turn on the car. But it can’t make anyone else want to ride in a car Stripe built, or follow the route its map creates, unless there’s something in it for them.

Reserve yield is that something. And it carries a live regulatory question. The GENIUS Act bans paying yield to holders, but not to distribution partners, who can share it downstream. Circle runs a single-partner version with Coinbase; OUSD widens it to 140. Legal today. But in February 2026 the OCC proposed a rule that would presume these arrangements violate the ban, and the banking lobby is pushing to close the gap, pointing to Treasury estimates of up to $6.6 trillion in deposits at risk. So OUSD’s central incentive is both its cleverest feature and its most exposed one. It works now. Whether it works in three years rides on a fight that’s still TBD as of this writing.

FIDO Won One Way. EMV Won the Other. OUSD Has Neither.

Two prior standards tell you what OUSD is up against. FIDO replaced passwords with device-based authentication and scaled clean, because its value was collective and cost no member a revenue stream. Killing the password helped everyone and hurt no one’s economics. That’s the neutral path. Shared value, nobody loses.  It still took a decade.

EMV is the comparison OUSD’s defenders will cite, and it cuts the other way. The chip standard is literally named for Europay, Mastercard, and Visa, controlled by the networks, in their direct interest. Even so, it didn’t scale on the merits. It needed a forcing function. The networks shifted fraud liability onto whoever hadn’t adopted, so inaction cost more than action. Even with incumbents wielding that lever, EMV took a decade in the U.S. and stalled near two-thirds adoption.

OUSD needs a forcing function of its own compelling enough that not adopting becomes the expensive choice.

The lesson for OUSD is that standards scale under one of two conditions. The value is neutral and nobody loses (FIDO), or the powerful want it and can compel it (EMV). OUSD sits in the middle. Its economics are rivalrous. Adoption by card networks erodes interchange and adoption by banks risks deposits, so it doesn’t get FIDO’s painless path. And it’s convened by a challenger, not the controlling incumbents, so it doesn’t get EMV’s lever. That doesn’t close the door. It means OUSD needs a third path. A forcing function of its own compelling enough that not adopting becomes the expensive choice. A forcing function of its own compelling enough that not adopting becomes the expensive choice. It’s betting yield distribution is enough.

The Questions That Decide OUSD’s Future

The announcement is barely a week old and a lot can change. There’s no answer yet. Only a handful of questions the frameworks surface.

One: Stablecoins are real and growing at the edges. Cross-border, remittances, weak-banking corridors, crypto settlement. OUSD needs that volume to move to the center of everyday commerce. It hasn’t yet. It might not. And incumbents are building to make sure that if it does, it happens on their rails.

Two: OUSD’s core incentive rests on a regulatory structure the OCC and the banking lobby are actively working to narrow. If the distributor-yield path holds, the engine runs. If it closes, it needs a new design.

Three: Visa and Mastercard signed on at trivial cost, and their own agentic rails are live. Their seat could mean real partnership, or watching a competitor’s rail while keeping all options on the table. And because Stripe can route anywhere, the networks may be hedging the wrong risk: the disintermediation threat lives in Stripe’s stack, which can enable acceptance without them, not at the governance table. If the wedge is enterprise M2M, that’s exactly where it opens. Not at the consumer checkout the networks are watching, but through the treasury.

OUSD’s core incentive rests on a regulatory structure the OCC and the banking lobby are actively working to narrow.

Four: OUSD is a bid to be the shared standard, which means it carries the full coordination burden of a standards body. If instead it’s Stripe owning a strong lane it can route across, it can win commercially without ever becoming the standard the launch implied. Different outcomes. And the 140 logos  may not all be betting on the same one.

The Case Against My Case

Stripe will say it’s not Stripe but an independent body that just happens to be launching on assets Stripe has invested in or owns or uses to process payments today. Run by the person who used to run Bridge until Stripe bought it. And that integration isn’t the bug, it’s the feature, the ignition. Owning every layer skips the coordination problem I keep citing.

But, as I mentioned, you can build the whole engine, design the route and still not make rivals want to ride in your car using your map. That doesn’t mean you still don’t want to walk around the showroom, sit in the car and get the new car smell. Take it for a spin= and have the sales person download all of the specs and the scoop. But the more completely Stripe owns the stack, the more reason some of the 140 logos might just want to pick up the brochure and say they’re still shopping around and will be back. That’s the trap of the vertical play, not the escape from it.

Others will say it’s not about the coin, it’s about orchestration, the map, and value moves to whoever controls that layer. Fair, except orchestration isn’t independent of adoption. There’s nothing appreciable to orchestrate if there’s no volume.

Then there’s distribution and acceptance. Stripe can default millions of merchants into OUSD and simply manufacture the adoption my frameworks say has to be earned. A default doesn’t win adoption. It imposes it. That may be the forcing function I said was missing. But if it is, it lives inside Stripe’s own pipes, which makes the question of who controls the stack matter more, not less. A standard adopted by default isn’t a shared standard. It’s a distribution channel in a consortium’s clothes.

Who Owns the Garden Where the Rose Grows?

Open USD is a serious entry into the most important contest in payments. The problem is real, the coalition is impressive, the friction advantage is solid, and the yield-sharing model goes at a real weakness in the stablecoin business. But a serious entry isn’t a settled outcome.

A standard adopted by default isn’t a shared standard. It’s a distribution channel in a consortium’s clothes.

The launch answered the easy question of whether you can assemble an impressive coalition and produce a headline-grabbing press release. Every hard question stays open. Through FIT, one strong leg, two weak ones, and a clock running against better-positioned incumbents. Through Ignition, one clever incentive, pointed at one party, resting on a contested regulatory structure. Against FIDO and EMV. A harder spot than both where a challenger is asking the powerful to cede, with no lever to make them, in a field where the powerful are already building their own answers. And running under all of it, the fact that fast cross-border fiat may not need a coin at all if the banks that run that volume today have their say.

The name says consortium. The infrastructure says something different. Until we see which way the winds blow, Open USD is neither the future of money nor a press release that lacks the there-there. It’s a real bet, on a direction the industry hasn’t chosen, placed by a company with a stake in every layer.

A rose, maybe even, that smells as sweet. But then again, Juliet never had to ask in whose garden it was growing.

Until NEXT time.

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