Open USD rattled Circle’s stock, but its key backers still support USDC
Executives at Coinbase, Visa and Mastercard said they plan to support multiple stablecoins, suggesting Open USD is another payments rail rather than a direct replacement for USDC.
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Summary
- The launch of Open USD, backed by Coinbase, Visa and Mastercard, initially sparked fears of a direct challenge to Circle’s USDC and wiped billions from Circle’s market value.
- Executives at Coinbase, Visa and Mastercard now say they are pursuing a multi-stablecoin, multi-chain strategy, positioning Open USD as an additional network rather than a replacement for USDC.
- Analysts say many Open USD partners have made only light commitments and that execution and existing liquidity in USDC and USDT will matter more than the size of Open USD’s consortium.
