Open USD targets stablecoin yield fight with partner payouts

Stablecoin investors are watching a shift in where value may flow if US rules curb yield paid directly to token holders. Open Standard's newly announced Open USD is built around that idea. Rather than paying users to hold the token, it plans to share reserve income with the businesses that distribute and use it, including merchants, wallets, exchanges, payment firms, and DeFi venues.

Open USD was announced on June 30 and is expected to launch later in 2026. Open Standard says businesses will be able to mint and redeem without fees or volume caps, while partners receive reserve earnings after a small management fee. The company also says the stablecoin will be run by an independent company with partner-led governance. More than 140 firms were listed as participants or partners, including Visa, Stripe, Coinbase, Solana, Base, Aave, Shopify, and BlackRock.

The model directly challenges how USDC economics already work. Circle's 2025 Form 10-K said 96% of its revenue came from reserve income, while Coinbase disclosed that its USDC revenue depends on income generated from reserves. Open USD aims to make that issuer-distributor split more explicit.

The open question is regulation. A draft CLARITY provision would block direct or indirect yield tied to stablecoin balances for restricted US users, while leaving room for activity-based rewards. Open USD has no live supply, reserve attestations, or redemption record yet, so its structure still needs to prove it can work in practice and pass compliance review.