Stablecoin Giants Unite Against Tether and USDC

Key Summary

Major financial institutions Visa, Mastercard, Stripe, and Coinbase have collectively committed $1 billion to the new stablecoin Open USD, launched on September 30, 2026. This backing shares reserve interest income with partner companies, giving Coinbase a financial incentive to favor Open USD over USDC. With significant liquidity and potential to reach tens of billions by mid-2027, Open USD poses a challenge to Tether's $184 billion market cap and USDC, as well as RLUSD. The partnership could disrupt the market if Visa or Mastercard default to OUSD for settlements, potentially threatening the stability of these established rival stablecoins.