Visa, Mastercard, Stripe, and Coinbase Commit $1 Billion to New Stablecoin: Is Open USD a Challenge to Tether, USDC, and RLUSD? - 24/7 Wall St.

A group of major payments and crypto firms—including Visa, Mastercard, Stripe, and Coinbase—has committed $1 billion to a new stablecoin initiative called Open USD, according to 24/7 Wall St. The move signals that established players in payments and digital assets see tokenized dollars as strategic infrastructure rather than a niche experiment.

Stablecoins are cryptocurrencies designed to hold a steady value, typically pegged to the U.S. dollar, and are widely used for trading, remittances, and payments. The market is currently dominated by Tether (USDT) and Circle's USDC, with newer entrants such as RLUSD also competing. A well-funded alternative backed by recognizable payments brands could shift how merchants, exchanges, and users choose which dollar token to hold or transact with.

What to watch: whether Open USD discloses details on reserves, custody, and regulatory treatment—factors that have historically shaped trust in stablecoins. Adoption by merchants and exchanges, not just the size of the commitment, will determine whether it becomes a genuine challenger. For now, the announcement underscores how competitive and institutionally backed the stablecoin sector has become.