When Open Standard announced Open USD on June 30, 2026, the initiative quickly attracted attention in the payments and fintech industry. At launch, I argued in my blog post that Open USD was an important development, but not yet a proven payment network. A strong roster of supporters can create momentum, but it does not automatically translate into liquidity, acceptance, or transaction volume.

On August 25, 2026, I sat down with Zach Abrams, founding CEO of Open Standard, the business entity behind Open USD, during the Stripe Tour Singapore event. Our conversations indicated that Open USD’s strategy is clearer: It aims to become a payment network measured by the volume of payments it moves instead of another large stablecoin issuer measured by the stablecoin issuance market capitalization.

Open USD Has A Distinct Economic Model From USDT And USDC

The clearest difference between Open USD and incumbent stablecoins lies in its economic model.

Zach contrasted Open USD with stablecoins whose economics depend heavily on reserve size. For USDT and USDC, market capitalization remains a key measure of success. Their issuers Tether and Circle operate more like investment management businesses than payment networks, with much of their revenue coming from interest earned on stablecoin reserves. Open USD, by contrast, is designed as a payment network, so its real test will be the volume of payments it moves through the network.

Its decision to share most reserve earnings with ecosystem partners supports this model. Rather than keeping reserve income for itself, Open Standard wants to give banks, payment providers, fintech companies, and platforms a financial reason to integrate and distribute Open USD.

This economic model could also make some existing stablecoin use cases more viable. For example, corporate treasurers could programmatically move idle cash into and out of tokenized money market funds, even when capital is idle for only minutes. Today, according to Zach, exit via fiat currencies costs of 5–10 basis points can make frequent movements uneconomic. Institutional investors could similarly use stablecoins as trading pairs to move collateral and liquidity more efficiently rather than relying entirely on slower fiat rails.

Open USD Could Change The Infrastructure Behind Card Payments

Zach pointed to collateral and settlement as areas where stablecoins could create value for financial institutions. In some card programs, collateral remains committed over weekends. Stablecoin-based arrangements could allow participants to adjust collateral and settle more frequently, including outside conventional banking hours. Stablecoin settlement could allow merchants to receive funds and start deploying those earnings in real time, 24/7.

This does not require stablecoins to replace cards at the point of sale. Cards can remain the customer-facing payment method while stablecoins support funding, collateral, or settlement behind the scenes. Zach sees Visa, Mastercard, and other payment networks as potential users of stablecoins for card settlement at scale.

Customers Do Not Need To See Open USD

Open USD may gain adoption without consumers or businesses deliberately choosing to hold it. A payment provider could collect fiat from the sender, use Open USD for cross-border settlement, and deliver local currency to the recipient. Stablecoins would function as payment rails rather than customer-facing products, although partners could choose to surface them to customers.

This changes the adoption question for banks and payment providers. They do not need to persuade customers to open stablecoin wallets. They need to determine whether Open USD can improve the cost, speed, liquidity usage, or operating performance of products customers already use.

It also changes how the market should measure adoption. Wallet numbers may reveal little if Open USD operates mainly as a mainstream payment settlement asset. Payment volume, repeat flows, active corridors, and conversion volume would provide better evidence of a functioning network.

Local Bank Connectivity Matters More Than Blockchain Reach

Open USD can be available globally, but its commercial usefulness will still be determined market by market. A stablecoin can cross a blockchain without borders in seconds, yet the complete payment may still be slow or expensive if institutions cannot convert it efficiently into the destination currency and deliver the funds through local payment systems.

This is particularly relevant in Asia Pacific. The region has substantial crypto trading activity and the associated on-chain stablecoin volume which provides crypto trading liquidity, but payment-ready stablecoin-to-fiat liquidity, institutional access, and local payout connectivity vary widely by country. A global exchange may provide deep USDT or USDC trading liquidity without necessarily offering a licensed institutional off-ramp into every local currency. Using Open USD for a transfer into Japan or a payout in the Philippines will therefore depend on more than blockchain reach. It will require regulated on- and off-ramps, competitive FX and conversion, local bank accounts, and access to domestic payment systems.

Deep partnerships with regional banks with strong existing networks such as DBS Bank could therefore matter more than adding more names to Open USD’s partner list. The banks that provide local liquidity and complete the fiat leg may ultimately determine which corridors become commercially viable.

What To Read Next

Forrester has dedicated research and blog posts on payment innovations, such as stablecoin-based payments, including:

Stripe’s New Stablecoin Bet: Open USD

Mastercard Makes Its Stablecoin Move: The BVNK Acquisition

Predictions 2026: Payments

How Stripe And Bridge Are Pushing Stablecoin Real-World Adoption: A Conversation With Mai Leduc

The State Of Stablecoin In Japan

Ant International’s Playbook On AI, Blockchain, And Wallet Network

Predictions 2026: Asia Pacific

Forrester clients can set up an inquiry or guidance session to discuss these topics with us.

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