New Stablecoin Just Announced: Open USD Backed by 140 Companies

[abaeze]

This could create a competitive environment in the stablecoin industry. However, it is not right to see it as a USDT alternative or a Bitcoin competitor right now. Rather, it is a test of a new business model. Everything will depend on its widespread use of general users.Tether earns a huge amount of interest from the US USDT reserve through Treasury bills, and most of that income remains with Tether alone. But the most interesting thing here is that they have said that the income earned from the reserve will be shared among the participating companies. There is no direct benefit to ordinary users but rather to encourage businesses to adopt it.

So, from a Bitcoin perspective, it is not a competitor. OpenUSD is a dollar-based stablecoin, which aims to be fast and easy to pay and use dollars on-chain. On the other hand, Bitcoin’s main purpose is to act as a decentralized asset with limited supply.

[mu_enrico]

For those who still mention USDT (Tether), I think this stablecoin is pretty much done. Even now, USDC is used more because of regulations (MiCA), let alone if OpenUSD is issued anytime soon. USDC still has the first-mover advantage in this space compared to OUSD, though, proven by the fact that so many merchants and services already accept USDC.

Regarding KYC, I think it will be applied as usual, i.e., on on-ramps and off-ramps. It still allows users to send money to an un-KYCed address, but it doesn't matter anyway since you need KYC to swap fiat money for stablecoins.