Coinbase helped build USDC – Why is it now backing the stablecoin trying to replace it, Open USD?
A large consortium-backed stablecoin, Open USD (OUSD), is challenging the issuer-led model that has long powered Circle and Tether. Backed by firms including Coinbase, Visa, Mastercard, Stripe, BlackRock, and Google, OUSD aims to offer free minting/redemption and return more reserve yield to distribution partners rather than keeping it with the issuer. Coinbase’s role is especially important because it has been a major USDC distribution channel and earns significant stablecoin revenue. Circle’s stock fell after the announcement, reflecting concern over its revenue-sharing relationship with Coinbase, which is up for renewal in 2026. Circle argues USDC’s deep liquidity, broad integrations, and compliance infrastructure create a durable moat that a consortium cannot quickly replace. Analysts warn OUSD may face cold-start, governance, and regulatory problems, plus weak coordination among members. The shift shows stablecoins are increasingly treated as commoditized settlement rails, with distribution platforms now demanding more of the economics.
