Open USD Launches Partner-Owned Stablecoin Model to Challenge Tether and Circle Duopoly

Open Standard is distributing the 'overwhelming majority' of its equity to partners based on how much they help grow its stablecoin, reversing the VC-backed model that dominates the $250 billion market.

A new stablecoin issuer is taking direct aim at Tether and Circle with a radically different ownership structure that shares equity with the partners who help it scale. Open Standard, the company behind Open USD, will distribute the majority of its shares over time to exchanges, wallets, payment processors and other partners based on their contribution to stablecoin adoption, CEO Zach Abrams announced.

The model reverses the typical venture-backed approach where founders and investors capture nearly all the upside while exchanges and service providers earn only thin fees for listing and distributing the token. Tether and Circle, which together control roughly 90% of the $250 billion stablecoin market, are owned by their founders and private shareholders; exchanges that drive billions in volume see none of the issuance revenue.

Abrams described the initiative as 'building money' in a way that aligns incentives across the entire ecosystem. Partners who integrate Open USD and drive transaction volume will receive equity grants that vest over multi-year periods, turning them into co-owners rather than service providers. The structure resembles a cooperative more than a traditional corporation.

The timing is notable. Circle recently signed a five-year deal with Binance to promote USDC, while Tether continues to dominate with over $120 billion in circulation. Both issuers generate billions annually in interest income from the Treasury bills and other assets backing their stablecoins, but none of that flows to the platforms that make the tokens useful.

Open Standard has not disclosed how much equity it will retain for founders and early investors, saying only that the 'overwhelming majority' will go to partners. The company also has not specified the metrics that will determine equity allocations, though volume and user acquisition are expected to be key factors.

For the stablecoin market, the experiment could reshape competitive dynamics. If major exchanges and wallets see a path to ownership rather than just listing fees, they may prioritize Open USD over incumbents. The risk is execution: Tether and Circle have spent years building regulatory relationships, banking infrastructure and liquidity that a new entrant cannot replicate overnight.

The broader question is whether shared ownership can overcome the network effects that have entrenched the top two stablecoins. Payment processors and exchanges have little reason to promote a third option unless the economics are compelling, and equity in a startup is worth nothing if the stablecoin fails to gain traction. Still, for partners frustrated by the concentration of stablecoin profits, Open Standard offers a model worth watching.