A consortium of over 140 global financial and big tech companies launched the Open USD (OUSD) stablecoin on May 30 (local time), triggering a 17.5% single-day drop in Circle's stock price. The new stablecoin introduced a revenue-sharing model that distributes reserve asset interest income to participating companies after operating costs, prompting investor concerns about Circle's existing USDC business model. The OUSD consortium includes Visa, Mastercard, Stripe, BlackRock, Google, IBM, Coinbase, Solana, Samsung Electronics, Dunamu, Shinhan Financial Group, Kakao Bank, K Bank, Hyundai Card, KB Kookmin Card, BC Card, Hana Card, Samsung Card, Woori Card, NH Nonghyup Card, and Hanwha Life, marking a shift from centralized stablecoin issuance to multi-company governance in the cryptocurrency market.
Open Standard Launches OUSD with 140-Company Consortium
According to the virtual asset industry on the 6th, the global stablecoin alliance Open Standard announced on May 30 (local time) the dollar-based stablecoin OUSD and stated plans to launch it within the year. The project brought together global financial, payment, and blockchain companies including Visa, Mastercard, Stripe, BlackRock, Google, IBM, Coinbase, and Solana. Domestic participants include Samsung Electronics, Dunamu, Shinhan Financial Group, Kakao Bank, K Bank, Hyundai Card, KB Kookmin Card, BC Card, Hana Card, Samsung Card, Woori Card, NH Nonghyup Card, and Hanwha Life.
While existing stablecoins Tether (USDT) and USDC operate under centralized structures centered on individual companies, OUSD adopted a consortium model where multiple companies jointly operate governance. The structure shares interest income generated from reserve assets with participating companies after deducting operating costs, which represents the most significant differentiator. Companies can use issuance and redemption without separate fees, and the structure does not impose artificial limits on large-scale transactions. Open Standard aims to utilize OUSD in various fields including payments, remittances, business-to-business (B2B) transactions, decentralized finance (DeFi), and AI agent payments.
Circle Stock Drops 17.5% Following OUSD Announcement
The announcement immediately impacted the market. Circle's stock price, listed on the New York Stock Exchange, plunged 17.5% on May 30 (local time) alone, falling to its lowest level in approximately four months. Investors interpreted this as concern that Circle's existing revenue model—which relies mostly on reserve interest income—could be shaken in the long term. Circle's structure depends on interest income from USDC reserve asset operations for most of its revenue. Industry observers predict that if models sharing reserve income with participating companies like OUSD spread, competition to secure distribution partners could intensify.
NH Investment & Securities Analyst Calls USDC Decline Concerns Premature
Securities firms assessed that OUSD's launch is unlikely to immediately lead to weakened market dominance for USDC. Hong Seong-wook, a researcher at NH Investment & Securities, stated, "OUSD plans to distribute reserve income to partner companies, so from a corporate standpoint there is an incentive to choose OUSD over USDC, which has expanded market concerns," but added, "However, concerns that USDC will rapidly lose market share due to OUSD are premature."
Hong explained, "Major global companies have been presented as partners, but how actively each company will actually participate remains unknown," and "It also needs to be confirmed whether OUSD can secure the development ecosystem and application compatibility at the USDC level across finance and DeFi." He added, "Circle is expanding its ecosystem by pursuing various new businesses such as AI agent functions, Arc blockchain, and Circle Payments Network," and "On the other hand, since OUSD has a consortium structure, how nimbly it can respond in terms of decision-making and technology development is also an area that needs verification."
Some domestic companies explained they have never conducted official participation consultations with Open Standard and merely conveyed intent to review participation possibilities. One company official stated, "We learned of inclusion in the alliance members through media reports," adding, "There were no consultations about specific roles or participation methods."
Global investment banks also assessed the market reaction as somewhat excessive. U.S. investment bank William Blair evaluated OUSD as "a solution searching for a problem." The explanation is that the reserve income sharing model OUSD promotes is not a new concept, as Circle already provides various incentives to USDC distribution partners. Global investment bank Bernstein also stated, "The market reaction was excessive," evaluating that "USDC is smaller than Tether in market capitalization, but remains the most utilized stablecoin in actual business-to-business commercial transactions."
Circle CEO Emphasizes Network and Regulatory Trust as Competitive Advantage
Circle also moved to address the market. Circle CEO Jeremy Allaire emphasized via SNS on May 1 (local time), "Stablecoin competitiveness is not created in a short period but is formed through liquidity accumulated over years, regulatory approval, and global networks."
Industry observers view that while OUSD's launch has clearly triggered new competition in the stablecoin market, actual market share changes will require considerable time as they must be supported by service integration, regulatory approval, transaction volume securing, and development ecosystem construction. An industry official stated, "OUSD is a symbolic case showing that the stablecoin industry is moving from issuance competition to ecosystem competition," adding, "However, it will not be easy to replace in a short period the DeFi, AI agents, global payment networks, and distribution channels that USDC has built over the years."
FAQ
What did Open Standard announce on May 30?
Open Standard announced the dollar-based stablecoin OUSD on May 30 (local time) with participation from over 140 global companies including Visa, Mastercard, Stripe, BlackRock, Google, IBM, Coinbase, and Solana, stating plans to launch it within the year.
Why did Circle's stock price drop 17.5%?
Circle's stock dropped 17.5% on May 30 (local time) following the OUSD announcement because investors were concerned that OUSD's revenue-sharing model—which distributes reserve interest income to participating companies—could threaten Circle's existing business model that relies mostly on reserve interest income.
What did NH Investment & Securities analyst Hong Seong-wook say about USDC market share concerns?
Hong Seong-wook stated that concerns about USDC rapidly losing market share due to OUSD are premature, noting that how actively each company will participate remains unknown and that OUSD needs to prove it can secure development ecosystem and application compatibility at the USDC level across finance and DeFi.
