Stablecoin adoption is moving deeper into mainstream finance, with Stripe, Visa (NYSE:V), Bank of New York Mellon Corp (NASDAQ:BNY) BlackRock (NYSE:BLK), Coinbase Global (NASDAQ:COIN) and more than 100 other firms backing a new dollar-linked token.
What Happened
The group will launch Open Standard, a new stablecoin venture designed to broaden access to digital money-movement infrastructure.
Open Standard will issue its own U.S. dollar-backed stablecoin, called Open USD, which partners plan to integrate into their platforms once it launches later this year.
Other backers include Klarna, Chime Financial, Alphabet (NASDAQ:GOOGL) and several fintech, crypto, banking and payment companies.
The effort will be led on an interim basis by Zach Abrams, co-founder and CEO of Bridge, the stablecoin infrastructure company owned by Stripe, reported Bloomberg on Tuesday.
Abrams said existing stablecoins have strengths, but businesses need an option that is open, low-cost, high-throughput, accessible and aligned with their interests.
Neutral Governance, Shared Economics
The launch comes as stablecoins gain traction under a more supportive U.S. regulatory environment. Currently, Tether and Circle (NYSE:CRCL) are dominant players while PayPal (NASDAQ:PYPL) stablecoin PYUSD remains a smaller player.
Open Standard aims to differentiate itself through neutral governance and shared economics.
Most stablecoin issuers profit from interest earned on reserves. However, earnings from Open USD reserves will be shared among partners, after a small management fee to cover operating costs.
BNY chief product and innovation officer Carolyn Weinberg said a stablecoin with neutral governance and shared economics could help unlock the next phase of digital asset growth, as reported by Bloomberg.
Image: Shutterstock
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