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Open USD is positioned as an additional stablecoin network, not a USDC rival
Coinbase, Visa, and Mastercard executives said they plan to support multiple stablecoins, after Open USD’s launch erased billions from Circle’s market value and drove Circle shares down as much as 20%.
Open USD, the stablecoin project backed by Coinbase, Visa, and Mastercard, triggered fears it could directly replace Circle’s USDC, wiping billions from Circle’s market value after the announcement. Circle shares fell as much as 20% and have yet to fully recover as the consortium later said it had more than 140 launch partners.
In its coverage, CoinDesk reports that executives at Coinbase, Visa, and Mastercard now frame Open USD as an additional payments rail rather than a single winner that displaces USDC. The companies are signaling a multi-stablecoin, multi-chain strategy, positioning Open USD as another network to connect users rather than a replacement for Circle’s token.
CoinDesk also notes that analysts have questioned how committed many Open USD partners are, arguing that execution and the existing liquidity in USDC and USDT may matter more than the size of the consortium. The shift reflects a broader change in stablecoins, as banks and payment networks increasingly seek roles beyond issuing tokens.
Recent earnings call comments from Open USD’s highest-profile backers add context to the rollout, CoinDesk reports. Coinbase said it met conditions to renew its commercial agreement with Circle, will continue growing the USDC ecosystem, and characterized itself as a multi-stablecoin platform.