Origin Dollar (OUSD)

How much of a threat does OUSD and its consortium pose to Circle's business?

That's the big question that has followed OUSD's announcement. The latest Bits + Bips looks at the parts of Circle's business OUSD challenges, breaks down the numbers, how it is likely to play out and what to watch out for.

https://t.co/3R3YGspJk2

Agree

Even if OUSD is a massive stablecoin formed by a consortium of payment companies, the stronghold of USDT/USDC cannot be easily toppled

The reason is simple: the strength of a stablecoin is not determined by the 'number of participating company logos',

✅Deep liquidity
✅Supply network to retail worldwide
✅Establishment as a trading pair
✅Adoption as leverage collateral
✅Collateral track record in DeFi
✅Existing flows of payments/remittances/market makers
✅The inertia of 'not wanting to break something that is currently working properly'

These determine its strength.

Especially for large exchanges and DeFi protocols, a mere notion of 'could get slightly higher yields' will not easily replace the existing benchmark stablecoins.

Stablecoins are not just cash.
They are a unit of trade, collateral, the basis for liquidation, and the credit infrastructure of the entire market

High yields are attractive,
but they are not enough to completely replace the historical liquidity, collateral performance, liquidation resilience, and participant habits.

OUSD is interesting.
However, I think it is at a stage of proving 'in which areas it will truly continue to be used' rather than trying to defeat USDT/USDC.