BlackRock Joins 140+ Firms to Launch Open USD Stablecoin Sharing Reserve Revenue
BLK•BlackRock has joined Stripe, Visa and over 140 partners to launch Open USD stablecoin late this year to return most reserve interest revenue, minus a management fee. Tether’s USDT holds 62% and Circle’s USDC roughly 25% of the $300 billion stablecoin market; Circle’s stock slid 13% after the announcement.
1. Consortium Formation
BlackRock has partnered with Stripe, Visa and over 140 other firms under a consortium called Open Standard to develop Open USD. The coalition includes major banks like BNY, Standard Chartered, BBVA and DBS, fintechs such as Klarna and SoFi, and crypto firms including Coinbase and Ripple.
2. Revenue Sharing Model
Open USD will return nearly all interest earned on its reserves to distributing partners, deducting only a management fee. This structure contrasts with incumbents Tether and Circle, which retain the bulk of income generated by their stablecoins.
3. Market Impact
Tether’s USDT currently commands about 62% and Circle’s USDC roughly 25% of the $300 billion stablecoin market. Circle’s stock fell 13% to $66 per share following the launch announcement, reflecting investor concern over increased competition.
4. Launch Timeline and Unknowns
Open USD is slated to launch later this year but the consortium has not disclosed which blockchain will host the token. The initiative follows the Genius Act’s regulatory framework for stablecoins and marks a major corporate entry into digital dollar assets.
