Why OpenUSD’s ‘real threat’ that tanked Circle stock still faces a steep uphill battle for adoption
The Stripe- and Coinbase-backed stablecoin consortium can challenge Circle’s business model, but analysts say building a network is harder than assembling big-name partners.
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Summary
- Circle shares slumped after the launch of the Open Standard consortium and its Open USD stablecoin, which aims to challenge Circle’s USDC by sharing reserve income with partners.
- Analysts say the selloff may be an overreaction, noting that earlier consortium-backed stablecoins like Paxos’ USDG have struggled to gain market share and that OUSD still faces major questions on structure, incentives and adoption.
- The move intensifies scrutiny of Circle’s economics and its partnership with Coinbase, while underscoring a broader shift in stablecoin competition toward distribution platforms such as exchanges, payment processors and wallets.
