Consortium including Visa, Mastercard jointly launch new global stablecoin

A coalition of major financial and technology companies, including Visa, Mastercard, and Coinbase, announced the launch of a new stablecoin initiative called Open Standard on Tuesday.

The consortium, which includes more than 140 participating businesses, plans to introduce Open USD, a U.S. dollar-backed stablecoin expected to launch later this year.

The initiative aims to increase global stablecoin adoption by overcoming the challenges businesses face when trying to scale the use of digital currencies. According to Open Standard CEO Zach Abrams, while current stablecoins offer significant advantages, businesses require a solution that is open, affordable, fast, widely available, and designed to support their long-term interests.

Under the new framework, companies will be able to mint and redeem Open USD without fees or transaction limits, making it easier to operate at scale.

Revenue generated from the reserves backing the stablecoin will be distributed among consortium members after deducting management fees to cover operational expenses.

Stablecoins are cryptocurrencies designed to maintain a fixed value by being backed by traditional assets such as the U.S. dollar or the euro.

Their regulatory environment in the United States changed significantly after President Donald Trump signed the GENIUS Act into law last year, establishing the country's first federal framework for stablecoins. The legislation was widely viewed as a major step toward integrating digital assets into everyday financial transactions.

Despite this regulatory progress, stablecoins continue to be used primarily for cryptocurrency trading rather than for routine payments or money transfers. Carolyn Weinberg, Chief Product and Innovation Officer at BNY, said that Open Standard's model of neutral governance and shared economic incentives could help drive the next stage of growth in the digital asset industry.