Open Standard—a consortium of over 140 payments firms, banks, and institutions including Stripe, BlackRock, and Coinbase—launched OpenUSD (OUSD) on June 30, 2026. Backed 1:1 by USD reserves, this new stablecoin stands out by channeling nearly all interest income from its reserves directly to its partner network rather than concentrating profits with a single issuer.
The announcement prompted an immediate 17% drop in Circle’s stock (CRCL), highlighting investor concerns about threats to the established USDC model.
Analysts at Coin Metrics, in their latest State of the Network report (#371), examine whether this represents a genuine structural challenge or if on-chain realities point to continued USDC resilience.
The core insight is that OpenUSD pressures issuer margins through revenue redistribution rather than rapidly eroding USDC’s circulating supply or market position.
Traditional stablecoin issuers like Circle and Tether primarily capture reserve interest as their main revenue source.
Circle, for instance, derived about 96% of its $2.7 billion FY 2025 revenue from reserves, though it shares a substantial portion with distribution partners such as Coinbase.
This has led to a “Revenue Less Distribution Costs” (RDLC) figure around $1.08 billion. OpenUSD flips this by embedding yield-sharing into its consortium structure, directing benefits to fintechs, exchanges, wallets, merchants, and processors that drive adoption.
This model builds on trends where distributors already claim significant value from the “float.”
Despite the buzz, USDC maintains formidable network effects.
With a market cap near $73 billion, it commands roughly 23% of the stablecoin duopoly alongside USDT (which together hold about 86% market share).
On-chain data underscores USDC’s high-velocity role: in the first half of 2026, it settled around 79% of approximately $38 trillion in adjusted transfer volume, far outpacing its supply relative to USDT.
Much of this activity centers on Base, while USDC anchors liquidity across centralized exchanges, DeFi money markets, perpetual futures venues, DEX pools, and collateral uses.
USDC’s integration runs deep. Major platforms like Coinbase hold substantial balances (with about 25% of supply in Coinbase products), and partnerships such as Hyperliquid—where Coinbase and Circle serve as deployers—allow protocols to capture up to 90% of yields for ecosystem incentives.
This illustrates a broader shift: economic power flows increasingly toward distributors and venues that embed the stablecoin into trading, collateral, and settlement rails.
Regulatory advantages further bolster USDC. Circle’s recent OCC approval for a national trust bank positions it under federal oversight, enhancing comfort for institutions, exchanges, and protocols.
Liquidity breadth remains superior on regulated onshore venues, where USDC dominates quote pairs, contrasting with USDT’s offshore strength.
OpenUSD exemplifies an evolving competitive dynamic focused on shared-yield networks and distribution power.
It may compress margins for traditional issuers by redirecting reserve income, yet USDC’s entrenched liquidity, multi-chain footprint, velocity, and regulatory moat suggest it will not be easily displaced.
Coin Metrics concluded in the research report that the stablecoin wars are shifting from supply battles to battles over economics and infrastructure integration. As distribution channels gain leverage, issuers must adapt to retain relevance in an increasingly partner-driven ecosystem.