140 Traditional Giants Enter Stablecoin Arena, Circle Plunges 17%: The Era of Encirclement Begins

News Editor

2026-07-02 02:44:47

According to reports, 140 traditional giants have jointly entered the stablecoin business, triggering a sell-off of Circle's USDC and a 17% price drop. This marks an unprecedented competitive pressure on crypto-native stablecoin issuers, who must shift from asset issuance to scenario innovation to counter the channel and compliance advantages of traditional players.

Event Overview

According to Foresight News, the stablecoin market has experienced a dramatic shift: 140 traditional giants have formed a united front against crypto-native issuers like Circle. As a result, Circle's USDC plunged 17%, sparking panic in the market.

Market Impact

This 'coup' signals that the stablecoin industry has moved from the 'easy money' era of printing coins to a phase dominated by traditional giants. With powerful distribution networks and regulatory licenses, these giants can quickly capture market share, squeezing native issuers. Circle's drop is just the beginning; more small and mid-sized issuers may be pushed out.

Industry Outlook

Analysts suggest that crypto-native stablecoin issuers must accelerate their transformation from asset issuers to scenario innovators, building differentiation in payments, cross-border settlements, and DeFi, or risk being wiped out by the encircling giants.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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