markets··1 min read
Circle Shares Drop 8% as Stripe, Coinbase, BlackRock Back Rival Stablecoin
Circle's USDC faces new competition as major firms support Open Standard's Open USD stablecoin.
Shares of Circle Internet Financial fell 8% on Tuesday after news that Stripe, Coinbase, and BlackRock are backing a new rival stablecoin network called Open Standard.
Open Standard plans to launch Open USD, a stablecoin that allows partner companies to keep the reserve income from their holdings and eliminates minting fees, directly challenging Circle's USDC.
Competitive Landscape
- Circle's USDC is the second-largest stablecoin by market capitalization after Tether's USDT.
- Open USD aims to attract partners by offering them a share of the reserve yield, unlike USDC which keeps that income.
- The backing from major financial and crypto firms signals potential for significant adoption and could increase competition in the stablecoin market.
Circle has not publicly commented on the development. The stablecoin market remains highly competitive, with regulatory scrutiny continuing to intensify globally.