Mastercard Joins Consortium to Launch Regulated Stablecoin Open USD

Mastercard has joined a major consortium of over 140 companies to launch Open USD (OUSD), a new regulated stablecoin designed for businesses. OUSD is pegged to the US dollar and will be fully backed by reserves such as short-term Treasuries or other safe assets.

The launch of OUSD aims to provide businesses with a better alternative to existing stablecoins, which are often limited in their scalability and accessibility. Open USD will have no mint or redeem fees, nor volume caps, and will share the economics of its reserves with partner companies after operational costs.

Mastercard's support for OUSD comes as part of its expansion into the stablecoin market. In March, Mastercard acquired stablecoin infrastructure company BVNK for $1.8 billion to connect on-chain and fiat rails. The company has also been expanding its settlement capabilities to support regulated stablecoins across various blockchains.

Zach Abrams, Founding CEO of Open Standard, stated that OUSD is designed by businesses growing it, making it a stablecoin built for the internet economy. Samara Cohen, Global Head of Market Development at BlackRock, added that 'We believe stablecoins can play an important role in the evolution of digital markets when supported by trusted infrastructure and practical utility.'