Stripe and Co. Take On Circle and Tether in Stablecoins
Summary
A consortium comprising major financial and tech players, including Stripe, Visa, Mastercard, Coinbase, BlackRock, BNY, Google, Shopify, and Chime, along with over 140 other firms, is launching a new stablecoin called Open USD later this year. This initiative follows the passage of the Genius Act, which legalized stablecoins a year ago. Open USD is positioned to challenge the current dominance of Circle and Tether within the \$300 billion stablecoin market. The broad industry support, exemplified by Shopify allowing its merchant customers to accept Open USD at checkout, suggests a significant push to establish it as a prominent digital currency.
Key takeaway
For investors evaluating the digital asset space, the imminent launch of Open USD by a consortium including Stripe, Visa, and BlackRock signals a major shift. This new stablecoin, backed by over 140 firms, poses a credible challenge to Circle and Tether's market dominance. You should closely monitor its adoption and integration, especially on platforms like Shopify. This could significantly reconfigure the \$300 billion stablecoin landscape.
Key insights
A powerful consortium is launching Open USD to disrupt the \$300 billion stablecoin market dominated by Circle and Tether.
In practice
- Shopify merchants will accept Open USD at checkout.
Topics
- Stablecoins
- Open USD
- Digital Currency
- Financial Technology
- Consortiums
- E-commerce Payments
- Genius Act
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Editorial summary, takeaway, and curation by AIssential. Original article published by The Information.