> For the complete documentation index, see [llms.txt](https://docs.nookapp.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nookapp.xyz/posts/a-new-stablecoin-has-entered-the-market.md). # A new stablecoin has entered the market By Joey Isaacson Since we started Nook, we built it on a singular stablecoin. USDC by Circle. But this week, a **new stablecoin OUSD** (Open USD), created by **Stripe** - and backed by major players in finance in tech including **Visa, Stripe, Mastercard, American Express, BlackRock, Google** and more - has entered as a new stablecoin in the market. Let’s jump into what a new stablecoin means for you and Nook. #### What is a stablecoin? As the financial world heads towards automated and open markets, stablecoins (USD) are the key way to interact. A stablecoin is a 1:1 backed asset tied to the US dollar or another currency. When you buy $1 of USDC, **you get a digital token** (USDC) that’s always **worth $1.** This allows everyone to interact with other markets, while keeping your assets secure and denominated in the correct currency (USD) - including the borrowing and lending markets Nook connects you to. Think of it as a digital dollar. Where it’s worth $1 wherever it is. Whether it is lending, borrowing, saving, trading - USDC is how the currency in which onchain financial markets interact. Just looking at its adoption is a good measure of trust. USDC is currently the largest US based stablecoin is USDC. Launched in 2018, this is the main stablecoin that powers Nook - and others like Coinbase, Visa and more. To date, there are over $74 billion of USDC deposits. While the company that created Circle, went public last year - sending its valuation to above $50 billion. With over 24% market share, USDC carries regulatory standing in the US and Europe and deep exchange liquidity - by partnering directly with banks to custody their $74 billion of deposits. And conducting regular, open and public audits through Deloitte. All funds Circle stores to back USDC are visible in an onchain money market for everyone to see. So with USDC being adopted by mainstream banks and companies like Stripe, Visa and more - why was a new major stablecoin created? #### What is the opportunity for a new stablecoin? USDC began with CEO Jeremy Allaire in 2013 as a regulated payments company. The company chose to work with banks, licenses, and regulators instead of trying to route around them. In 2015, Circle became the first stablecoin company to receive New York’s BitLicense, which helped signal that it was willing to operate inside formal financial rules. When Circle launched USDC in 2018 with Coinbase through the Centre consortium, the promise was simple: every USDC would be redeemable 1:1 for a real dollar, backed by reserves, with monthly attestations from Grant Thornton. Over time, it added more trust layers: clearer reserve disclosures, cash and short-term U.S. Treasury backing, major partners like BNY Mellon and BlackRock, and public support for stablecoin regulation. Although USDC and Circle **were built on trust** - they were not necessarily built on sharing revenue. Meaning that, of the $70+ billion in deposits they have, and the $2.74 billion dollars of that revenue they generated from deposits to USDC - not all of it goes back to the distributors or customers. That’s the big rub. USDC and Circle have been **so dominant**, that OUSD and other competitors are now offering a **lower cost,** fairer **pricing** structure where the customer and distributor of the stablecoins get more of the revenue. If not all. *"The marquee partner names clearly suggest a real threat to Circle's business,"* Rob Hadick, general partner at venture capital firm Dragonfly, told CoinDesk. He added that Stripe's broad suite of financial products could give the consortium an edge by allowing it to "uniquely undercut Circle's economics." This new model means increased pressure on Circle. If USDC can be dethroned as the leading US based stablecoin. Either way, we think it’s good for Nook. And you. Let me explain why. #### Why this is good for Nook Currently, **Nook is built on USDC only**. The most trusted US based stablecoin. When you deposit your cash onto Nook, it is converted into USDC and then lent out across different open lending markets. But I expect the introduction of a new stablecoin to be good for a few reasons. First is that, when a new stablecoin is launched into the markets, there is generally a period of price discovery and utilization in the early days. New markets are created, often including incentives to create these markets, and rates can fluctuate as the market adapts. Take USDC for example. USDC is available across 15 networks - and on Morpho alone, there are **44 USDC based lending markets**, ranging from 1.1% APY to 11.1% APY. A lot of that is driven by the collateral assets people are borrowing against. But another factor is the demand for USDC across pockets of the financial world. For example, if I am a borrower of USDC on the Optimism network, which is more rare, then the rate that I pay as a borrower might be higher than most other networks. Let’s say, 7% or 8% APR vs 3% or 4%. As a new stablecoin enters the market - there will be these imbalances, where a borrower wants to borrow the new stablecoin (OUSD) but the availability of the asset is low. Automatically triggering a higher borrow rate (APR) and therefore a higher rate for you, the lender. Second, we think more companies like Google, Stripe, Blackrock and more **grow the pie**. More institutions **using stablecoins** builds trust in these overall markets. Right now, Nook connects you to markets with over **$50 billion in deposits**. But we think this number could grow by **10x driven by more institutional borrowers coming online** - if it matches the growth of stablecoin adoption (Citi predicts stablecoin supply could grow from roughly **$300B today** to **$1.9T by 2030** in its base case.) I have covered this in the past - but if more firms begin to use and accept stablecoins as payment - more firms will put their assets in these markets to borrow against. In general, we think **competition** between different markets, providers - and stablecoins - **is good.** It’s why we built Nook to be based on multiple markets: not just one. A way to access markets across the ecosystems, including different protocols, chains and assets. \[1] USDC supply, market cap and market share figures: StablecoinBeat, stablecoin market cap dashboard; Circle, “Circle Reports First Quarter 2026 Results.” \[2] Circle annual revenue and reserve income figures: Circle, “Circle Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results”; Circle investor/earnings materials. \[3] USDC reserve interest and Treasury backing: Circle, “Circle Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results”; Circle USDC reserve reports and attestations. \[4] USDC adoption, transaction volume and supported networks: Circle, “2025 State of the USDC Economy Report”; Circle, “USDC Circulation Soars 78% Year Over Year.” \[5] Circle trust history and regulatory positioning: New York Department of Financial Services BitLicense records; Circle company history; Centre Consortium launch materials; Circle and Coinbase USDC launch materials. \[6] USDC reserve transparency and attestations: Circle USDC reserve reports; Deloitte USDC reserve examination reports; historical Grant Thornton USDC attestations. \[7] Circle banking and reserve partners: Circle announcements on BNY Mellon and BlackRock; Wall Street Journal reporting on BNY Mellon adding USDC custody, minting, burning and transfer support. \[8] Stablecoin adoption projections: Citi, “Stablecoins 2030”; Standard Chartered stablecoin market projections.