The upcoming launch of Standard opening‘s Open the US dollar (OUSD) stablecoin could pose an “existential threat” to it circle‘s US dollarsBut it depends on how things go, A Currency stocks The analyst said on Monday (July 13).
In a Note It was published on Monday by CoinShares’ chief Ethereum researcher Luke Nolan He wrote that one of the potential strengths of OUSD is that it is backed by more than 140 Partners. The other reason is that the stablecoin model plans to share the reserve income with the partners who distribute it, minus the management fees.
“This is the main difference versus the current stablecoin model, where the issuer keeps reserve income (excluding contractual distributions to partners, e.g. Coinbase“-Circle,” Nolan wrote.
While this initially sounds bearish for Circle, these factors are countered by the depth of Circle’s network of exchanges, decentralized finance (DeFi) venues, payments service providers (PSPs) and banking custody, which the company has been building for nearly a decade, and the fact that Circle could emerge from this challenge stronger if OUSD fails to deliver gains, Nolan wrote.
OUSD is expected to launch in the second half of this year, according to the note.
“The market will likely continue to approach this situation with uncertainty, and new developments on the OUSD side could change this, for better or for worse, for Circle,” Nolan wrote. “Until OUSD launches, the key things to watch are how the USDC offering evolves, whether Circle has adjusted its distribution economics, and what tools it can use to combat what many now see as an existential threat.”
Open Standard announced OUSD on June 30, saying it was backed by the dollar Stable coin Powered by over 140 companies comprising stakeholders from traditional payments and cryptocurrency native ecosystems such as Visa, MasterCard, tape, American Express, Coinbase, Black Rock, Google Cloud, Bank of New York, IBM, DoorDash and Fire blocks.
Rather than focusing reserve economics on a single issuer, Open USD will allow participating institutions to mint and redeem the currency without volume limits while sharing reserve income across the network after operating costs, the consortium said.
PYMNTS reported on July 1 that the OUSD launch is being positioned as a challenge to the concentrated economics of incumbent companies. Stablecoin issuersincluding Circle, but also faces the unanswered question of who ultimately decides when the interests of the consortium differ from those of its members.
piments CEO Karen Webster He wrote on July 8 that although Open Standard is described as an independent consortium, it is… Infrastructure It is almost every bar.
“That doesn’t make it any less credible,” Webster wrote. “It makes it a serious, ambitious bet aimed at solving a real problem, made by a company with a stake in every layer of the rail and enough distribution to seed adoption before the coin is even launched.”
