#USA #San Francisco #stablecoin #Stripe #Open USD

Stripe Partners with Open USD

In a significant development for the fintech world, Stripe has announced its participation in the launch of Open USD, a new global stablecoin introduced by Open Standard on June 30. This initiative aims to facilitate global money movement, leveraging the advantages of stablecoins, which include high processing speed, low cost, and programmability.

Stablecoins have gained immense popularity recently, with transaction volumes rapidly approaching those of ACH networks. However, businesses continue to face substantial hurdles when integrating these forms of currency. The high issuance and redemption fees associated with large-scale payment processing make existing solutions less viable. Moreover, companies may not always benefit from the income generated from backing assets, creating additional barriers to entry. Even when third-party issuers provide development roadmaps, they may not always align with a company's specific business needs, leaving developers with limited options.

Design Principles of Open USD

Open USD is designed around three core principles:

1. Build for Scale: Companies can issue and redeem Open USD without any costs and without any artificial limitations on transaction volumes.
2. Earn by Default: The revenue generated from Open USD's reserve assets is returned to the partners entirely, aside from a minimal management fee that covers operational costs.
3. Govern Collaboratively: Open USD is managed by Open Standard, an independent organization governed by a board comprised of partner companies. This structure ensures that decisions prioritize the collective benefit of all participating businesses rather than the interests of any single company.

Zach Abrams, the founding CEO of Open Standard, stated, "While existing stablecoins offer numerous advantages, they must be open, low-cost, and highly accessible to be effectively leveraged in significant commercial transactions. I am thrilled to launch Open USD with over 140 companies. This stablecoin has been designed by the very enterprises that drive the evolution of the internet economy."

Numerous companies from various sectors have shown their support for Open USD and completed the registration process. Some notable participants include:

• - Financial Institutions: Visa, Stripe, Mastercard, American Express, Discover, and more.
• - Banks and Investment Firms: BlackRock, BNY Mellon, Standard Chartered, Commonwealth Bank of Australia, and others.
• - Tech Giants and Startups: Google, Samsung Electronics, Shopify, Mercado Libre, and Coinbase.

Stripe's President of Technology and Business, Will Gaybrick, commented, "Businesses need a global stablecoin that can meet the scale of industry requirements. However, this is not only about accommodating the economic scale of 2026; it’s about preparing for an unprecedented volume of transactions expected by 2040. That's why Open USD will become the standard stablecoin for users operating with Stripe, who will lead economic growth for the next 15 years."

Stripe has established itself as a leader in creating programmable financial services and processing over $1.9 trillion in payments each year—equivalent to 1.6% of the global GDP. With a focus on harnessing AI and stablecoins, Stripe is committed to driving the adoption of cutting-edge technology in the global economy.

For more details, visit Stripe’s official website.

Open USD represents a significant leap forward in the world of stablecoins and financial transactions. As it gains traction among major companies, it may reshape the future of how businesses execute payment processes, making them more efficient and accessible for everyone involved.