A Consortium of 140 Companies Including BlackRock and Visa Is Building a Stablecoin That Could Eat Circle Lunch

A new stablecoin backed by over 140 companies — including BlackRock, Coinbase, Mastercard, Stripe, and Visa — is being called the most credible threat yet to Circle’s USDC, the second-largest dollar-pegged token in crypto. The project, called Open USD, could reshape how stablecoins share revenue with the businesses that actually use them.

By David Chen | July 16, 2026

The Hook: A Fundamentally Different Business Model

Open USD, developed by a group called Open Standard, is targeting a launch in the second half of 2026. What makes it different from every other stablecoin is its revenue model. Traditional stablecoin issuers like Circle keep the interest earned on the cash and Treasury reserves backing their tokens. Open USD plans to distribute that yield to participating businesses, keeping only a management fee for itself.

That is a direct attack on Circle’s core economics, according to a report from crypto asset manager CoinShares published this week. Analyst Luke Nolan wrote that if Open USD succeeds, it could “push stablecoins further into mainstream payments by making the economics and governance more attractive for the businesses actually using them.”

The consortium behind Open USD reads like a who’s who of global finance and tech. BlackRock, the world’s largest asset manager, Coinbase, the biggest US crypto exchange, Visa and Mastercard, the two dominant payment networks, and Stripe, the fintech giant — all are involved. That level of backing gives Open USD instant credibility that most new stablecoin projects never achieve.

On-Chain Evidence: The Numbers Behind the Threat

To understand why Open USD matters, you need to understand how Circle makes money. When you hold one USDC token, Circle holds roughly one dollar in reserves (mostly short-term Treasury bills and cash). The interest on those reserves is Circle’s revenue. It is a very profitable business — but only because Circle keeps the entire cut.

• USDC circulating supply — approximately 73 billion USD, down from nearly 80 billion in March
• Total stablecoin market — roughly 312 billion USD across all issuers
• Open USD consortium — more than 140 companies, targeting H2 2026 launch
• Circle stock drop — shares fell about 15 percent on the day Open USD was announced

Open USD flips that model. Instead of the issuer keeping all the reserve income, the yield gets shared with the partners who help distribute and use the stablecoin. That gives payment processors, exchanges, and financial platforms a strong financial reason to push Open USD over USDC. Why would Visa or Mastercard keep processing USDC transactions for free when they could earn a cut from Open USD?

The CoinShares report also highlighted a critical timing factor: August 18 is when Coinbase’s revenue-sharing agreement with Circle comes up for renewal. Under that deal, Coinbase receives roughly half of USDC’s reserve income. If Open USD offers a better revenue split, Coinbase — which is part of the Open USD consortium — has a clear incentive to shift its weight.

The Core Conflict: Can Circle Defend Its Turf?

Circle is not standing still. The company recently became a federally supervised bank, giving it regulatory advantages that newer stablecoin issuers may struggle to match. USDC is also deeply integrated across crypto exchanges, DeFi protocols, and payment systems — liquidity that took years to build and cannot be replicated overnight.

CoinShares acknowledged this advantage in its report. The analysts noted that USDC’s “established liquidity and integrations could prove difficult for any newcomer to replicate.” They also pointed out that important details about Open USD — including its reserve structure and exact fee model — remain undisclosed.

Still, the threat is serious enough that Mizuho, the Japanese investment bank, downgraded Circle’s stock to “underperform” from “neutral” and slashed its price target from 85 USD to 50 USD this week. Mizuho’s analysts argued that Open USD’s revenue-sharing model threatens Circle’s long-term economics in a way that traditional stablecoin competitors never have.

The market may be overreacting, though. Circle shares fell sharply on the Open USD announcement, but CoinShares noted that some of that decline was likely amplified by technical selling tied to the Russell index reconstitution — a mechanical event where funds rebalance their holdings, not a fundamental judgment about Circle’s future.

Market Implications: What This Means for DeFi and Stablecoin Users

For DeFi users, the competition between Open USD and USDC could be a net positive. When stablecoin issuers compete, the businesses and protocols that rely on stablecoins win — either through better revenue sharing, lower fees, or improved technology. If Open USD launches with genuine backing from its 140-company consortium, DeFi platforms may integrate it alongside (or instead of) USDC.

However, Open USD is not expected to threaten Tether, according to the CoinShares report. USDT, the largest stablecoin by far, dominates emerging markets and offshore dollar liquidity — a completely different competitive moat that no consortium-backed token can easily crack. Tether’s strength comes from its massive adoption in regions where people need dollar access but lack US banking relationships, not from deals with Wall Street firms.

For investors watching the stablecoin sector, the key question is whether Open USD can convert its high-profile backing into actual adoption. Having 140 companies on a governance list is one thing. Getting exchanges to list the token, DeFi protocols to accept it as collateral, and payment networks to process it at scale is another challenge entirely.

The Verdict: Why Regular Investors Should Care

If you hold USDC or use it for DeFi transactions, watch what happens around the August 18 Coinbase-Circle renewal. That date could determine whether Coinbase begins shifting its weight toward Open USD — and whether USDC’s market position starts to erode.

If you are invested in Circle (CRCL) stock, the picture is more complicated. The company has regulatory advantages, deep liquidity, and years of integrations. But for the first time, it faces a competitor backed by its own distribution partners — including Coinbase, which is arguably the single most important platform for USDC’s adoption in the United States.

And if you are watching the broader trend, Open USD represents something bigger than one stablecoin launch. It signals that Wall Street and payment giants want a bigger piece of the stablecoin pie — and they are willing to build their own alternative to get it. That could accelerate the integration of stablecoins into everyday payments, but it could also fragment a market that has relied on a few dominant tokens for liquidity.

For now, CoinShares recommends watching two things: whether Circle changes its distribution strategy in response, and whether Open USD can turn its impressive list of backers into real transaction volume. Until then, it remains what CoinShares called it — “a credible, but unproven, challenge to USDC.”

The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.