Open Standard has launched Open USD, a stablecoin designed to compete with Tether and Circle, with a model that CEO Zach Abrams says is focused on "building money." The company also plans to distribute the "overwhelming majority" of its equity over time to partners based on how much they help grow the stablecoin.
A different kind of stablecoin model
Open USD enters a market dominated by Tether and Circle, the two largest stablecoin issuers. While most stablecoins are backed by reserves and used primarily for trading, Open Standard is pitching Open USD around the concept of "building money." That phrase, used by the company, suggests a focus on infrastructure and utility rather than just issuance. The stablecoin will compete directly with Tether and Circle, though Open Standard has not detailed how it will differentiate on reserves, redemption, or regulatory compliance.
Equity distribution tied to growth
The most unusual part of the plan is the equity arrangement. Open Standard says it will give away the "overwhelming majority" of its equity over time to partners, with the amount determined by how much each partner helps grow the stablecoin. That's a direct incentive model: the more you contribute to Open USD's adoption, the more ownership you receive. It's not a traditional venture-backed structure, where equity goes to investors and employees. Instead, Open Standard is treating equity as a growth tool, aligning partners' success with the stablecoin's success.
Zach Abrams, CEO of Open Standard, is leading the effort. He hasn't specified a timeline for the equity distribution, nor has the company named any partners yet. The details of how growth will be measured — transaction volume, active wallets, merchant adoption, or something else — also remain unclear.
Competing with Tether and Circle
Tether and Circle are the incumbents in the stablecoin space, with Tether's USDT and Circle's USDC widely used for trading, payments, and as collateral. Any new entrant faces a steep climb: liquidity begets liquidity, and stablecoins are sticky once integrated into exchanges and wallets. Open Standard's equity-for-growth plan could attract partners who want a stake in the upside, but it also raises questions about governance and control if a large portion of equity ends up in many hands.
The company hasn't said whether Open USD will be available on multiple blockchains, what its reserve backing looks like, or how it plans to handle regulatory scrutiny. Those are basic questions any stablecoin issuer must answer, especially as regulators in the U.S. and abroad pay closer attention to dollar-pegged tokens.
For now, Open Standard has a concept and a leader. The next concrete steps would be naming partners, explaining how growth is measured, and detailing the stablecoin's technical and financial underpinnings. Until then, Open USD is a model rather than a live product. Abrams and his team have yet to announce a launch date or exchange listings. The equity distribution plan, while novel, won't mean much without adoption — and adoption is exactly what Tether and Circle already have.
