Open USD rattled Circle's stock, but its key backers still support USDC
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The launch of Open USD, a stablecoin project backed by Coinbase, Visa, and Mastercard, caused a sharp drop in Circle's stock value due to fears of competition with Circle’s USDC stablecoin. However, executives from the three companies have since clarified that Open USD is intended to complement, not replace, USDC. They emphasized a multi-stablecoin, multi-chain approach, supporting multiple stablecoins rather than selecting a single winner.
Why it matters
This development reflects a broader shift in the stablecoin market, which is now attracting banks, payment networks, and fintech firms as digital dollar adoption grows. The involvement of major payment companies signals growing interest in integrating stablecoins into payment rails and financial platforms. The executives’ stance highlights industry cooperation on stablecoin ecosystems rather than a head-to-head competition, which could affect commercial agreements and market dynamics.
Key context
The announcement of Open USD led to significant investor concern, pushing Circle’s shares down by up to 20%. Circle’s USDC currently holds a $72 billion market cap and competes with other digital dollars such as Tether's USDT. Coinbase, Visa, and Mastercard have longstanding roles in stablecoin support and distribution. Visa recently launched a platform supporting stablecoins that initially promotes Open USD. Mastercard and Coinbase similarly support various stablecoins. Analysts note that many Open USD partners have only made preliminary commitments, and existing liquidity and network effects in USDC and USDT remain strong.
Key numbers and entities
Key organizations include Circle (ticker CRCL), Coinbase (COIN), Visa (V), and Mastercard (MA). Circle’s USDC stablecoin holds a $72 billion market value. Over 140 partners have been announced by the Open USD consortium. Executives quoted include Coinbase CFO Alesia Haas, Coinbase CEO Brian Armstrong, Visa CEO Ryan McInerney, and Mastercard CEO Michael Miebach. Analysts cited include Lorenzo Valente of ARK Invest, Amey Dandawate of Bluechip Ratings, Owen Lau of Clear Street, and Rob Hadick of Dragonfly.
What remains unclear
The source does not provide full details on Open USD’s governance structure beyond comments that not all 140+ partners will be involved. An Open Standard spokesperson refrained from commenting on governance and said more details will be shared at launch later in 2026. It remains uncertain how much financial or operational commitment Open USD partners will make, as some appear to have only soft letters of intent. The practical impact of Open USD on USDC’s market position and user adoption is yet to be seen.