New Stablecoin Announcement: Open USD Backed by 140 Firms

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#1May 12, 2024, 11:32 PM
Open USD, or OUSD, has just been revealed on June 30, 2026. Apparently, a ton of major players like Visa, Mastercard, Stripe, American Express, BlackRock, and about 140 other companies are behind this stablecoin. Sounds huge, right? The issuer is Open Standard, LLC, and they're planning to use the Tempo network from the start, with more networks likely to jump on board later. The launch is expected to happen later this year. What's your take? Could this be a win for the crypto space? Do you think it'll take the crown from USDT and USDC? Or is it a bad sign that instead of breaking free from banks, people are just getting more bank-related products?
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mike42Full Member
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#2May 12, 2024, 11:47 PM
None of the stablecoins with significant market capitalization are truly decentralized. Therefore, the arrival of $OUSD should not have any negative impact, even though they're backed by banks. The existence of $OUSD will drive better adoption if awareness of the asset is spread, increased adoption means increased capitalization for the crypto industry.
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SilentGuruSenior Member
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#3May 13, 2024, 05:41 AM
It is better than what we have now, OUSD is managed by collective governance of 140+ partners made up of large corporations. It is certainly better than a stablecoin with billions market cap managed by a single corporation. Even though it's still pretty much stablecoin provided by bankers. On the other hand, when what we have is just a corporate managed stablecoin dominating the space, it's always good to have another one to keep the market healthy and competitive. After the news came out CIRCLE stock has dumped significantly, the market knew there is less market share for USDC or even USDT.
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chris.deg3nFull Member
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#4May 13, 2024, 05:56 AM
Its really promising on papers because there are lots of companies involve with that coin, but its hard to assume that they could be a game change because we need to see first how big the adoption will came unto it. Somehow its good to see more stablecoin circulating in the market, since this is good for creating more competitions and better standards. But I don't really think that with the existence of OUSD it can easily replaced USDC and USDT since this two stable coins are well established and also for sure that many people will prefer to have it than those new introduced even if they say its been backed with many companies.
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calmfalconSenior Member
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#5May 15, 2024, 12:07 PM
While I sure did wish they found a new name and did not do something like this, because the name sucks, I still have to agree that they will be a big competition for USDT. Because when these big companies do offer you help, then you are going to end up with something much better on the long run, there is no way that you could be doing that badly. These companies are worth trillions together, so there is no way that this could get any worse, it is going to get a lot better without a doubt.
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SilentGuruSenior Member
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#6May 15, 2024, 04:44 PM
Feels the same, OUSD is a weird name but it actually represents how their stablecoin works, it allows institutional to mint the stablecoin but too bad only regulated and authorized institutions is allowed. OUSD don't need to do the hardwork, the European Union is already driving out USDT from their region and OUSD comes in to fill the gap. Fun fact, Paolo Ardoino, Tether's CEO is recognizing OUSD as the second player in stablecoin market and disregarding Circle for some reason in his latest tweet . It's funny because USDC and OUSD is MiCA compliant, able to operate in Europe yet USDT can't.
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bit2017Senior Member
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#7May 18, 2024, 03:13 AM
It must be admitted that the Trump administration has a positive narrative on crypto and its policies are more lenient toward crypto. However this is not without its downsides. If held by a non crypto party, the direction of US policy could potentially change, and this would undoubtedly have a significant impact on the market. The mainstream is still influenced by every US decision and we may return to the Joe Biden era or even more restrictive, if the government falls into the hands of a more anti crypto administration.
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bridge100Senior Member
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#8May 19, 2024, 05:41 AM
There is no money to be made from this and for that reason we should not look at this like it's something that could be mattering to us. It doesn't matter if we use USDT or USDC or OUSD or whatever this new one is named. That means we are not going to get the best out of this, it is not going to be something to profit. You can't just buy it when it first comes out, and hope to make money wit hit, because it can't go up, it's stable, just the name suggests. This is why we need to be careful. I get it, some people are excited about it, but if it becomes super famous and everyone uses it and USDT goes away and USDC goes away and this one becomes 300 billion dollar market cap, sure it's great for them, but doesn't matter to us at all.
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stack_2017Senior Member
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#9May 19, 2024, 09:07 AM
I was always convinced that stablecoins like USDT and USDC are going to pave the way for CDBCs (regardless of what the current administration or some of the world leaders are saying about that) and this partnership between all of thoses companies just reaffirms that conviction. Stablecoins are already very centralized, but I'm pretty sure OUSD will find a way to make it even worse.
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maxi2017Senior Member
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#10May 21, 2024, 09:01 PM
We are looking at a cartel of (currently) 140 of some of the most powerful financial and tech giants on earth.  Visa, Mastercard, American Express, Stripe, BlackRock, Coinbase, Google, IBM, Shopify... all backing one stablecoin.  Oh yeah, Tether and Circle should be absolutely terrified with this news.  They are essentially single-issuer entities that hoard the massive yield generated by their underlying treasury reserves. OUSD is going to share that reserve revenue with the companies who actually drive adoption. So, for an exchange like Coinbase or a fintech giant like Shopify,  it is simply an obvious choice to make when deciding between an asset that shares its profits with you or not.
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john88Full Member
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#11May 21, 2024, 09:10 PM
I just took a look at their Full Partner list, and one name really caught my attention.. and I immediately concluded that this stablecoin isn't much better than USDT or other stablecoins. It might even be worse. And take a look at this This new stablecoin is sure to be a strong competitor to USDT and other major stablecoins, since it has a broader range of functions and is backed by so many global companies. As for whether it will take over USDT and USDC’s dominance, we don't know yet—only time will tell, but I think it has tremendous potential to become the dominant stablecoin in the future if its adoption rate continues to rise.
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CyberWhaleSenior Member
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#12May 23, 2024, 05:35 AM
Good competition for both Tether and Circle. The project that will feel the impact of this new stablecoin the most is going to be Circle. Tether is already well known and it's actively used as the benchmark for other stablecoins. But then again, we can't deny that Open USD will likely get integrated across the entire board. Imo, that alone is the single biggest advantage that it has over the status quo. I'm curious though, most of these firms backing openUSD won't allow stablecoin payments without KYC so I'm struggling to see a situation that a user will want to KYC to use stablecoins when they can do same tx with USDT with no KYC?
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alexwalletSenior Member
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#13May 23, 2024, 11:06 AM
Well, so I'm surprised it got the support of 140 companies at once in the first place. At least it's the most stable coin that meets government censorship standards. It seems they're still working hard to manifest CBDC, albeit in a different form. Edit: good point. We know the policy will ultimately come down to a single rule, even if they claim it's for the global interest and neutrality. https://joinopenstandard.com/
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SilentGuruSenior Member
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#14May 23, 2024, 11:39 AM
We got some news about OUSD, Samsung and other South Korean big companies are actually denying their involvement with OUSD and have never announced official partnership. Make me curious how many companies they consider as "partners" actually don't even know they are within the Open USD alliance   .
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fullnodeSenior Member
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#15May 25, 2024, 09:19 PM
Several of their supposed partners have come out to deny or downplay their involvement in Open USD. This could end up being another partnership announcement that turns out to be more hype than substance. https://protos.com/open-usd-is-lying-about-its-149-partnerships-report/ Regardless, there are still some confirmed partners that hold a lot of power in finance and crypto. People might not abandon USDT and USDC so easily, but with the backing of these companies, Open USD has the potential to reach a good level of mainstream adoption. It is lamentable that these companies will never put their support behind Bitcoin in a similar way. They prefer something that is centralized and easier to control.
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stack_2017Senior Member
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#16May 26, 2024, 12:18 AM
Is there any source to that information? Even so, I don't see how would this be enforced and still be considered a crypto? You can't be having a coin that has a multiple layers of KYC. Unless the idea here, is for the stablecoin to never touch traditional exchange's and its only meant for the banking system then that's another story. But if it's allowed to be CEXes, then that's probably the only KYC you need to do, the exchange's (for the time being at least, because I have said above, I definitely can see things going worse from here).
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#17May 26, 2024, 01:47 AM
I don't think USDT or USDC will be phased out anytime soon. The stablecoin market needs to create space for liquidity, trust, exchange support, regulation, and real use cases. Open USD could be successful, but we need to see how many companies actually use it beyond the announcement, how transparent the reserve is, and whether it really benefits ordinary users.
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raven1337Hero Member
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#18May 26, 2024, 04:44 AM
Several partnership mentioned if they already denied that they were being a part of this consortium. So i expect other major companies mentioned as the backers of OUSD may not aware with their involvement in this project. This sounds another scam. It works like OUSD send those big companies email, but when they said yes. So OUSD put them in the list of partnership. This is not a trasparent project, and i'm doubting their credibility. OUSD doesn't sound a legit stablecoin. I'd rather stay away.
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CyberWhaleSenior Member
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#19May 26, 2024, 05:27 AM
No sources. I only said it hypothetically because I read that the upcoming clarity act won't require KYC for users doing self custody but there would likely be KYC requirements if they interact with crypto businesses or regulated entities. Majority of those companies that are part of Open USD coalition are definitely regulated and will require KYC. Reading this again and I just see that if KYC requirements are imposed on oUSD, other stablecoins will likely be subject to it too
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SilentGuruSenior Member
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#20May 26, 2024, 09:40 AM
A stablecoin transfer between address won't require KYC, they can't enforce it. But a payment through payment processor will definitely requires KYC. However this is not new, bitpay and crypto.com has been requiring user to login to their exchange and require KYC before they will allow you to pay using crypto. Even if they do nothing payments will requires KYC, but those companies they are partnered with will only issue stablecoin and likely not gonna have anything to do with how user use stablecoin.
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