Open USD targets USDC with partner-funded stablecoin rewards

Stablecoin competition is shifting from trust and distribution to who shares the economics. Open Standard said its Open USD token will let businesses mint and redeem at no cost and in unlimited size, while passing reserve income to partners after fees. More than 140 companies have joined, including Visa, Mastercard, and Coinbase.

That model could matter for DeFi if partners use their share of reserve revenue to fund user rewards. Open USD is planned to launch later this year with native support on Plasma and Tempo. If partners direct that income into liquidity mining, higher lending yields, wallet cashback, or bridge rebates, the token could compete for deposits now parked in USDC and USDT pools.

The setup also sits in a regulatory gray area. The GENIUS Act bars stablecoin issuers from paying interest directly to holders, but leaves open how far affiliates or third parties can go. Coinbase already offers rewards on USDC, and PayPal does the same with PYUSD.

The money involved is large. With short-term Treasury yields near 3.7%, every $1 billion in circulation could produce about $37 million a year in gross reserve income before costs. Circle's first-quarter 2026 results already showed rising partner payments, and its stock fell as much as 17% intraday after the Open USD announcement.