New Stablecoin Just Announced: Open USD Backed by 140 Companies

[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.

[OmegaStarScream]

So as an update to this: Visa has just announced launching a stablecoin platform to give companies the ability to issue, store, manage and redeem stablecoins (currently with support for Open USD)[1] with Circle stock price going down 5% after the news.

[1] https://corporate.visa.com/en/sites/visa-perspectives/newsroom/visa-stablecoin-platform.html

[Kavelj22]

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.

I won't trust any of them even if they are regulated coins. However I believe in the effiency of those called stablecoins as a trading tool and a mean of electronic payment, I still think they highly riskier than any other form of fiat money (I believe they are not cryptocurrencies in full meaning but a cryptographic form of fiat money just like any scriptural form), and that they represent a real threat to cryptocurrency in its basic concept.

Another major problem with those called stablecoins is the correlation with the USD. A decline in the value of the dollar, which can happen at any time for any unforeseen reason, can cause enormous losses for users of other local fiat currencies. Therefore, trust in the dollar is essential for trusting such projects.

[nelson4lov]

So as an update to this: Visa has just announced launching a stablecoin platform to give companies the ability to issue, store, manage and redeem stablecoins (currently with support for Open USD)[1] with Circle stock price going down 5% after the news.

[1] https://corporate.visa.com/en/sites/visa-perspectives/newsroom/visa-stablecoin-platform.html

Holders of CRCL stock are at the receiving end of bad market conditions. The clarity act is finally getting some motion and this should be the time where CRCL stock would've been unstoppable. Instead, it has gone down over -50% since that rally that occurred during their quarterly earnings report. Circle as a team need to be at the forefront of stablecoin innovation and development now more than ever because competitions are always going to be a thing in that sector.

[mu_enrico]

I won't trust any of them even if they are regulated coins. However I believe in the effiency of those called stablecoins as a trading tool and a mean of electronic payment, I still think they highly riskier than any other form of fiat money (I believe they are not cryptocurrencies in full meaning but a cryptographic form of fiat money just like any scriptural form), and that they represent a real threat to cryptocurrency in its basic concept.

Another major problem with those called stablecoins is the correlation with the USD. A decline in the value of the dollar, which can happen at any time for any unforeseen reason, can cause enormous losses for users of other local fiat currencies. Therefore, trust in the dollar is essential for trusting such projects.

Not sure if it's riskier than paper USD since it pretty much has the same backers (big banks), and surely it's not just a correlation, but the stablecoin represents a 1:1 peg to the actual dollar.

I think the threat is about using cryptocurrency as a means of payment as we thought before, since they mainly use the technology to issue fiat on top of the chain. Gone is the dream that we pay in, let's say, 10 cryptocoins (whatever they may be).

But there's no threat to crypto as a store-of-value thing.

[Abiky]

I won't trust any of them even if they are regulated coins. However I believe in the effiency of those called stablecoins as a trading tool and a mean of electronic payment, I still think they highly riskier than any other form of fiat money (I believe they are not cryptocurrencies in full meaning but a cryptographic form of fiat money just like any scriptural form), and that they represent a real threat to cryptocurrency in its basic concept.

Another major problem with those called stablecoins is the correlation with the USD. A decline in the value of the dollar, which can happen at any time for any unforeseen reason, can cause enormous losses for users of other local fiat currencies. Therefore, trust in the dollar is essential for trusting such projects.

If they're not backed by the government, then it's not worth holding onto them for the long-term. This new OpenUSD stablecoin aims to bring a lot of buzz to the crypto industry. But with established players in the scene, it's hard to believe it will take off anytime soon. Not even PayPal's USD stablecoin (PYUSD) has succeded.

Based on the path the Trump administration is taking, it seems to me that USD-based stablecoins will become the de-facto "Digital Dollar" of the nation. Only time will tell. Either way, USD stablecoins are way ahead in the game. Where does that leave EUR stablecoins? Alone, dusting in the corner. Just my two sats.

[TastyChillySauce00]

Holders of CRCL stock are at the receiving end of bad market conditions. The clarity act is finally getting some motion and this should be the time where CRCL stock would've been unstoppable. Instead, it has gone down over -50% since that rally that occurred during their quarterly earnings report. Circle as a team need to be at the forefront of stablecoin innovation and development now more than ever because competitions are always going to be a thing in that sector.

I'm sure Brian Armstrong, CEO of Coinbase which is in a collaboration agreement with Circle through revenue sharing and so on, already at the forefront, he's been involved with a lot of talks and interviews actually but the Clarity act hardly move and their lobby seems to have failed.

Besides that the stock might be going down because bearish market which means lower volume and lower yield, and it's not only Circle that suffer the same bearish stock, other listed crypto companies too.