A rival stablecoin backed by BlackRock and Visa plans to share reserve income with partners, pressuring Circle’s USDC profitability.
A consortium of over 140 firms, including BlackRock, Coinbase, and Visa, is developing Open USD, a stablecoin set to launch in late 2026. The project aims to distribute reserve income to partners, unlike Circle’s USDC, which retains yield for itself. Analysts warn this model could squeeze Circle’s margins by raising distribution costs and altering stablecoin economics.
USDC currently dominates the market with deep liquidity and integrations, but Open USD’s approach targets the core revenue model of stablecoin issuers. By sharing yield with partners, the consortium seeks to attract mainstream payment adoption, potentially reshaping competition in the sector.
CoinShares noted that while Open USD poses a credible threat, USDC’s established infrastructure may still provide a defensive advantage. The report highlighted the risk to Circle’s profitability if the new stablecoin gains traction among institutional and retail users.