Open USD poses biggest threat yet to Circle's USDC, CoinShares says
CoinDesk 2026-07-15 14:03:54
Context: Open USD, a bank-backed stablecoin developed by Open Standard, is poised to launch in the second half of 2026 and poses a significant threat to Circle's USDC, according to a report by crypto asset manager CoinShares. The stablecoin is backed by a consortium of over 140 companies, including BlackRock, Coinbase, Mastercard, Stripe, and Visa. This new stablecoin directly challenges Circle by giving partners income generated by reserves backing the stablecoin, undermining USDC's distribution economics.
Key Facts
- Open USD is backed by a consortium of more than 140 companies, including BlackRock, Coinbase, Mastercard, Stripe, and Visa, and is targeting a second-half 2026 launch.
- Unlike traditional stablecoin issuers, Open USD plans to distribute the yield to participating businesses, retaining only a management fee, which could squeeze Circle's margins while raising the cost of maintaining USDC distribution.
- USDC's circulating supply has fallen to about $73 billion from nearly $80 billion in March, trimming its share of the roughly $312 billion stablecoin market as competition from newly regulated issuers intensifies.
- Circle shares fell more than 17% on the day Open USD was announced, though CoinShares said the decline was likely amplified by technical selling linked to the Russell index reconstitution.
- The Open USD model also strengthens Coinbase's hand ahead of the Aug. 18 renewal of its revenue-sharing agreement with Circle, under which the exchange receives roughly half of USDC's reserve income.