Open Standard announced the launch of a new dollar-pegged stablecoin, Open USD, backed by 140 payment, financial, tech, and crypto institutions including Visa, Mastercard, BlackRock, Google, and Coinbase. The stablecoin features zero-cost minting and redemption, reserve yield sharing with partners, and neutral governance, directly challenging Circle's dominant USDC. The news sent Circle's stock (CRCL) tumbling over 17% in a single day.
Open USD Launches to Challenge USDC's Dominance
Open Standard has unveiled its new dollar-pegged stablecoin, Open USD, with backing from a consortium of 140 major institutions across payments, finance, technology, and crypto, including Visa, Mastercard, BlackRock, Google, and Coinbase. Open USD introduces innovative mechanisms such as zero-cost minting and redemption, sharing reserve yields with partners, and a neutral governance model, directly challenging Circle's long-standing dominance with USDC.
Market Reaction: CRCL Plunges Over 17% in a Day
Following the announcement, Circle's publicly traded shares (CRCL) experienced a sharp sell-off, dropping more than 17% in a single trading session. Investors fear that Open USD's broad institutional support and zero-cost features could significantly erode USDC's liquidity and market share, casting a shadow over Circle's future growth prospects.
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