Open USD Stablecoin Launches with Major Backers

A new stablecoin called Open USD has been launched by an alliance of over 140 companies, including Coinbase and BlackRock. This move is designed to address issues with existing stablecoins, such as high fees for minting and redeeming tokens at scale, issuers pocketing interest earned on reserves, and a lack of input from businesses using the coins.

The new stablecoin, Open USD, promises free and uncapped minting/redemption, reserve earnings shared with partner businesses minus a small fee, and governance by a board drawn from Open USD's partner companies. The backer list includes payments giants Visa, Mastercard, and American Express, banks such as BlackRock, BNY, and Standard Chartered, tech firms like Google and Shopify, and crypto players like Coinbase and Ripple.

Circle's stock price has plummeted nearly 16% on the day following the announcement. The company's shares fell to a recent price of $63.99, according to Yahoo Finance, pushing its plunge to 39% in the last month.