Stripe · Circle · Coinbase · CoinDesk
Jefferies flags against buying the dip in Circle as Open USD raises new competition fears
Compiled by KHAO Editorial — aggregated from 3 sources. See llms.txt for citation guidance.
✓ KHAO Verified
Circle (CRCL) shares bounced 5% Wednesday after a 17% plunge, as investors are weighing whether the new Open USD stablecoin consortium backed by Stripe, Mastercard, Coinbase and BlackRock poses a lasting threat to the USDC issuer.
Key facts
- The authors argued that Circle, which holds roughly 25% of the $300 billion stablecoin market, is moving into a more competitive phase
- Circle (CRCL) shares bounced 5% Wednesday after a 17% plunge, as investors are weighing whether the new Open USD stablecoin consortium backed by Stripe, Mastercard, Coinbase and BlackRock poses
- He said Open Standard's biggest challenge may be coordinating more than 140 participants with competing interests
- The launch of Open USD, backed by more than 140 companies including Stripe, Coinbase, Visa, Mastercard and BlackRock, points that shift
Summary
Circle shares were higher on Wednesday after Tuesday's plunge, but Jefferies warned that rising competition from bank- and fintech-issued stablecoins, including the new Open USD consortium, could pressure USDC’s growth and market share. The Open USD network, backed by more than 140 firms such as Stripe, Coinbase, Visa, Mastercard and BlackRock, aims to share reserve income with participants, potentially making it an attractive alternative for payment providers. Circle CEO Jeremy Allaire and ARK Invest’s Lorenzo Valente questioned whether a large consortium can coordinate effectively and withstand regulatory pressure, arguing that USDC’s existing network effects and regulatory footprint give it an edge over new rivals.