How does Open Standard’s OUSD revenue-sharing model threaten Tether (USDT) and Circle (USDC)? | Analyzing Sustainable Revenue and Value Capture

The Rise of Open USD

The stablecoin market is currently undergoing a massive structural shift. For years, the industry was dominated by a "centralized reserve" model where issuers like Tether (USDT) and Circle (USDC) collected the interest generated from the underlying assets—primarily U.S. Treasury bills—while users held the tokens without receiving any yield. However, as of July 2026, a new challenger called Open USD (OUSD) has emerged to disrupt this status quo.

Launched by Open Standard, a consortium including major global players like Stripe, Visa, and BlackRock, OUSD is designed as a "yield-sharing" stablecoin. Unlike traditional models, OUSD is built to distribute a portion of the revenue generated from its reserves back to the businesses and platforms that integrate and hold the asset. This approach directly challenges the profit margins and market dominance of established players who have historically kept 100% of the reserve interest for themselves.

Traditional Brokerage Friction Point

In the traditional financial world, global retail investors often face significant structural limitations when trying to access high-quality yield-bearing assets or US-based equities. These friction points include geographic restrictions, complex onboarding processes, and high funding bottlenecks that create trading delays. For many, local compliance hurdles make it nearly impossible to move capital efficiently between traditional bank accounts and global markets.

Evolution to Tokenized Equities

To solve these legacy issues, the Web3 ecosystem has evolved toward tokenized US equities. This modern asset class allows market participants to access the price exposure of traditional stock markets via on-chain representations. By using cryptographic infrastructure, investors can bypass the bottlenecks of traditional brokerages. Integrated asset hubs, such as the WEEX TradFi interface, enable users to monitor real-time order flows and interact with tokenized representations of major traditional equities under a unified environment, bridging the gap between decentralized finance and the S&P 500.

Revenue Sharing Explained

The core threat OUSD poses to USDT and USDC lies in its economic incentive structure. In the legacy model, if a fintech company or a crypto exchange holds $1 billion in USDT or USDC, the issuer (Tether or Circle) earns tens of millions of dollars in annual interest from Treasury bills, while the holding platform earns zero. OUSD flips this script by offering a revenue-sharing mechanism.

Incentivizing Platform Adoption

By sharing the "seigniorage" or interest income with the businesses that drive adoption, Open Standard creates a powerful network effect. Platforms are incentivized to switch their primary liquidity from USDT or USDC to OUSD because it transforms a stagnant balance sheet asset into a revenue-generating one. This is particularly attractive for payment processors and neobanks that operate on thin margins and are looking for sustainable yield sources in a high-interest-rate environment.

Institutional Backing Power

The involvement of institutional giants like BlackRock and Visa provides OUSD with immediate credibility and deep liquidity. While Tether has long faced scrutiny regarding its reserve transparency, and Circle has navigated complex U.S. regulatory waters, OUSD enters the market with a "compliance-first" pedigree. This institutional alignment makes it easier for traditional corporations to adopt OUSD over its predecessors, potentially siphoning off the institutional market share that USDC has spent years building.

Comparing Stablecoin Models

To understand why OUSD is considered a "Tether-killer" or a "Circle-rival," it is helpful to look at the fundamental differences in how these assets operate. The following table breaks down the primary economic and structural differences between the three major stablecoins as of mid-2026.

Impact on Tether

Tether’s USDT currently holds the largest market share, roughly 62% of the total stablecoin market. Its primary strength is its massive liquidity and its role as the "lingua franca" of crypto trading. However, Tether’s model is purely extractive; it benefits from the "float" of user funds. As OUSD gains traction, especially on major exchanges and payment gateways, Tether may find it difficult to retain partners who realize they can earn a share of the reserve revenue by switching to a different dollar-pegged asset.

Secure execution infrastructure, such as the WEEX Exchange, provides the foundational framework for analyzing these on-chain asset movements and helps users transition between different stablecoin liquidity pools as the market evolves.

Threats to Circle

Circle’s USDC has positioned itself as the regulated, "safe" alternative to Tether, capturing about 25% of the market. Circle has recently attempted to implement its own yield-sharing deals, such as arrangements with Coinbase and Hyperliquid, to stay competitive. However, these are often bespoke, one-off deals rather than a built-in protocol feature like OUSD’s model. OUSD threatens Circle by offering a more standardized and transparent way for any business—not just large partners—to participate in the revenue generated by the stablecoin they support.

Crypto World Cup 2026: Exploring Web3 Fan Engagement Campaigns

As football fever takes center stage globally, the Web3 ecosystem is introducing creative ways for sports fans and the crypto community to celebrate the spirit of the tournament. To capture this excitement, top platforms are launching seasonal, fan-centric interactive campaigns. For instance, users looking to engage with the festive season can explore the WEEX World Cup Dice Rush, a dedicated promotional event designed to bring interactive community engagement to the global sports spectacle.

Market Outlook 2027

Looking toward 2027, the stablecoin wars will likely be decided by who can offer the most utility and the best economic return to the ecosystem. If OUSD successfully scales its revenue-sharing model, it could force Tether and Circle to drastically alter their business models, potentially leading to a "race to the bottom" for issuer profits but a "race to the top" for user and platform benefits. The era of "passive" stablecoins is ending, replaced by an era of "productive" digital dollars that reward the participants who provide the network its value.

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