Circle Internet Group shares closed down 17.52% on Tuesday at $62.65, after the debut of Open USD, a new stablecoin backed by BlackRock, Google, Visa, Coinbase and more than 140 companies. The decline reflected a sharp market response to a competing model in the stablecoin sector.
Yahoo Finance market data showed Circle opened at $72.25 and fell as low as $62.52 during the session before stabilizing near that level. Trading volume rose to more than 34.5 million shares, far above its average daily volume of about 14 million, pointing to heavy investor repositioning after the announcement.
Open USD shifts reserve income toward partners
Open USD, or OUSD, was launched by Open Standard, an industry initiative led by Bridge co-founder Zach Abrams. Its structure differs from the traditional issuer-led stablecoin model. The network offers fee-free minting and redemption, while distributing most reserve income to ecosystem participants instead of concentrating that revenue with a single issuer.
Governance is also designed differently. Rather than sitting under one issuing company, Open USD will be governed by an independent organization led by partners. That approach cuts into one of Circle’s key business foundations, since reserve income has historically flowed mainly to stablecoin issuers. The report noted that the model resembles the incentive structure used by Paxos’ Global Dollar Network, which also shares reserve revenue with partners.
Open USD is arriving as stablecoins move beyond crypto trading into cross-border payments, merchant settlement and corporate treasury management. Institutional demand has encouraged multiple firms to launch new dollar-pegged tokens with distinct economic structures aimed at banks, payment providers and fintech platforms.
Circle says USDC expansion remains on track
Circle CEO Jeremy Allaire rejected the idea that the new entrant represents a major threat to USDC. He said the stablecoin market is large enough to support multiple successful issuers.
According to Allaire, Circle will keep expanding USDC’s institutional network by adding banking, payments and capital markets partners, while investing in infrastructure that improves interoperability across blockchain networks. He also said USDC remains “the most trusted, widely adopted, institutional-ready stablecoin in the world,” adding that Circle works with thousands of institutional partners across nearly every major sector.
Allaire said Circle plans to extend USDC to additional blockchain networks and deepen integration with banks, payments companies, capital markets firms and enterprises. He also pointed to broader economic participation for partners in the growth of the USDC ecosystem. Even with Circle holding to its existing long-term strategy, Tuesday’s sell-off showed that investors are closely watching how revenue-sharing stablecoin models could reshape competition.