Stripe · Circle · Coinbase · CoinDesk
Open USD poses biggest threat yet to Circle's USDC, CoinShares confirms
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
★ Tier-1 Source
Open USD, a bank-backed group developing a dollar-pegged stablecoin, is the most credible threat yet to Circle Internet's (CRCL) USDC because it targets the economics at the heart of the company’s business, crypto asset manager CoinShares said in a Monday report.
Key facts
- USDC's circulating supply has fallen to about $73 billion from nearly $80 billion in March, trimming its share of the roughly $312 billion stablecoin market as competition from newly regulated
- Developed by Open Standard, the institutional-focused stablecoin is backed by a consortium of more than 140 companies, including BlackRock (BLK), Coinbase (COIN), Mastercard (MA), Stripe and Visa
- Circle shares were 3.8% higher in early trading at $65.61
- Open USD, a bank-backed group developing a dollar-pegged stablecoin, is the most credible threat yet to Circle Internet's (CRCL) USDC because it targets the economics at the heart of the company’s
Summary
CoinShares said Open USD directly challenges Circle by giving partners income generated by reserves backing the stablecoin, undermining USDC's distribution economics. Open USD comprises more than 140 companies, including BlackRock, Coinbase, Mastercard, Stripe and Visa. Despite the threat, CoinShares said USDC’s established liquidity and integrations could prove difficult for any newcomer to replicate. Unlike traditional stablecoin issuers, who keep the income generated by their reserves, Open USD plans to distribute the yield to participating businesses, retaining only a management fee.