Coinbase Joins 140+ Partner Consortium to Launch Fee-Free Open USD
COIN•Coinbase joined a consortium led by Visa and Mastercard that includes over 140 companies to launch ‘Open USD,’ a U.S.-dollar pegged stablecoin allowing unlimited, fee-free minting and redemption. The zero-fee model could erode Coinbase’s current stablecoin trading and custody revenue streams.
1. Launch of Open USD Consortium
Visa and Mastercard spearhead Open Standard consortium including over 140 participants such as BlackRock, Stripe, and Coinbase to issue Open USD, a U.S.-dollar pegged stablecoin enabling unlimited minting and redemption without fees or volume caps to promote enterprise adoption.
2. Coinbase’s Participation and Revenue Impact
As a distribution partner, Coinbase will facilitate Open USD transactions but forgo traditional minting and redemption fees, potentially reducing its stablecoin trading and custody revenue derived from USDC issuance and reserve interest.
3. Market Context and Regulatory Alignment
Open USD enters a growing stablecoin market valued at approximately $313 billion, compliant with federal GENIUS Act guidelines, and positions itself against incumbents USDC and USDT by offering a revenue-sharing model and independent governance structure.
