Circle’s stock came under pressure after Open USD launched with backing from major payments and crypto firms. But Coinbase, Visa and Mastercard executives have framed the project as another stablecoin rail, not a direct replacement for USDC.
Circle’s stock came under pressure after Open USD launched with backing from major payments and crypto firms. But Coinbase, Visa and Mastercard executives have framed the project as another stablecoin rail, not a direct replacement for USDC.
Open USD’s launch shook investor confidence in Circle after Coinbase, Visa and Mastercard appeared among the project’s high-profile backers, raising concerns that USDC could face a coordinated challenge. Circle’s shares fell as much as 20% after the announcement, which featured more than 140 launch partners and put fresh attention on competition in dollar-backed stablecoins.
Open USD’s launch shook investor confidence in Circle after Coinbase, Visa and Mastercard appeared among the project’s high-profile backers, raising concerns that USDC could face a coordinated challenge. Circle’s shares fell as much as 20% after the announcement, which featured more than 140 launch partners and put fresh attention on competition in dollar-backed stablecoins.
The development matters because stablecoins are moving deeper into mainstream payments infrastructure. As banks, fintechs and card networks explore digital dollar products, competition is no longer only about issuing tokens. It is also about which exchanges, wallets, networks and payment platforms can distribute them at scale.
Recent comments from major Open USD supporters suggest a more cautious picture than the initial market reaction implied. Coinbase said it remains closely tied to Circle and expects to keep growing the USDC ecosystem, while also supporting multiple stablecoins. Visa described its approach as multi-coin and multi-chain, and Mastercard said Open USD would be another asset enabled across its network alongside existing stablecoin efforts.
Analysts cited by CoinDesk said joining the Open USD consortium may not equal a deep strategic commitment. Some viewed the partner list as more of an option to participate if the project gains traction than a signal that companies are shifting meaningful resources away from USDC.
Execution remains the central question. USDC and Tether’s USDT already have liquidity and network effects, while Open USD still has to prove it can align a large group of partners and win usage. For now, the message from major backers is that stablecoin infrastructure is becoming more open and crowded, rather than a single-token race with an immediate winner.
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