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Open USD plan could pressure USDC economics, CoinShares warns
Open USD, a consortium-backed dollar-pegged stablecoin slated for 2026, would route reserve yield to participating partners under a management-fee model that could squeeze issuer margins.
CoinShares says Open USD presents its biggest threat yet to Circle's USDC, arguing the newer stablecoin targets the distribution economics at the center of Circle's business. In a report, CoinShares said Open USD would share income generated by reserves with participating businesses rather than keeping that yield at the issuer, retaining only a management fee.
CoinShares described Open USD as a bank-backed group built by Open Standard, with a consortium of more than 140 companies including BlackRock, Coinbase, Mastercard, Stripe and Visa. The stablecoin is expected to debut in the second half of 2026, though reserve structure and fee details remain undisclosed.
The report also highlighted potential implications for Coinbase, noting Open USD's model could strengthen Coinbase's position ahead of the Aug. 18 renewal of its revenue-sharing agreement with Circle. Under that arrangement, the exchange receives roughly half of USDC's reserve income, CoinShares said.
CoinShares pointed to market signals alongside its warning, noting USDC's circulating supply has fallen to about $73 billion from nearly $80 billion in March. It added that USDC shares fell more than 17% on the day Open USD was announced, though it suggested the drop may have been amplified by technical selling tied to a Russell index reconstitution.