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Tether and Circle turned reserve interest into one of crypto’s most profitable businesses, and OUSD’s first fee terms show the card networks and payment companies plan to compete by making that interest worth nothing as a moat.
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In Today’s Edition:
**Headline:OUSD Gives Partners the YieldQuick Bites:Circle’s $865M in Q3 Revenue & Reserve IncomeYield of the Week:**Pendle PT-sUSDfr’s 26.05% APY
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HEADLINE
**State of play: **According to documents seen by CoinDesk, the Stripe, Visa, Mastercard, Coinbase and Shopify consortium isn’t trying to beat Tether and Circle on reserve income but to give it away, betting that partners who get the yield will bring the distribution those issuers have to pay for.
Open Standard will charge a 0.1 basis point fee on payment volume, capped at $0.01, so any payment of $1,000 or more costs one cent.
Each founding partner has committed more than $1B in near-term launch liquidity.
Partners can earn equity from an annual pool based on their monthly OUSD holdings and flows, with a $50M minimum to qualify.
No single partner can own more than 5%, even with all warrants earned, which keeps any one member from dominating the consortium.
Visa also released over 100 pages of technical guidance for partners integrating OUSD through the Visa Stablecoin Platform.
**What’s Next: **Partners start integrating through the Visa Stablecoin Platform, and the first equity measurements will show which firms clear the $50M bar.
**Why it Matters: **Charging a capped fee and handing reserve yield to partners undercuts the model USDT and USDC are built on, which turns distribution into the main thing stablecoins compete on.
**Our Take: **The yield giveaway is less important than the equity pool. OUSD is paying its biggest users with ownership, so the payment rails become the shareholders, and for a “neutral” open standard that is a structural conflict nobody has addressed yet.
QUICK BITES
Circlereports$865M in Q3 revenue and reserve income.Tokenization and stablecoinsmayweather Democrats’ sweep.Open Standardsets outmanagement fee, offers equity earning pool.
YIELD OF THE WEEK
The marketoffers fixed-yield exposure to sUSDfr, Forest Road’s savings token backed by a private loan book spanning film/TV tax credits, renewable energy project cash flows, and crypto-collateralized lending, with PT maturing on 28 Jan 2027.Buying PT locks in a 26.05% fixed APY to maturity, redeemable 1:1 for sUSDfr worth 1 USDfr at expiry, with entry via Pendle routing (no KYC, no minimum) or direct USDfr purchase on Uniswap.
Yield is generated from Forest Road’s specialty finance loan book interest, with losses absorbed first by Forest Road’s first-loss capital per sector, then by the sGROVE coverage reserve, before reaching PT holders.
The vaultaccepts USDT0 deposits from KYC-verified eligible investors and issues yzPP, the junior tranche of Yuzu Money’s structured yield product, with a current share price of 1.231086 USDT0.Capital is deployed across Yuzu Money’s underlying strategies, with yzPP holders absorbing first-loss exposure in exchange for a higher target yield, subject to a 30-day redemption window with a 5,000 yzPP minimum order.
Yield is generated from the underlying strategy portfolio, delivering a 15.0% estimated APY with yield continuing to accrue during the redemption period, accessible via KYC/KYB or secondary purchase on KyberSwap.
The vaultaccepts USDC deposits and deploys capital across a diversified portfolio of real estate RWA strategies managed by Tulipa Capital, with ~$1.63M in TVL against a $20M cap and a current share price of 1.0342.Capital is allocated across diversified RWA positions managed via non-custodial MPC wallets in partnership with Fordefi, with monthly withdrawals processed and redemptions targeting T+45 (extendable to T+60 during high utilization).
Yield is generated from underlying real estate RWA strategies with share-based growth accruing auto-compounded, delivering a 14.00% target APY at a 20% performance fee and 0% management fee, with quarterly share price updates.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
