This article analyzes how the launch of the Open USD stablecoin alliance directly impacts Circle and USDC. The core change is the redistribution of reserve yields to partner enterprises, undermining Circle's profit model of retaining interest. It recalls the failure of Libra in 2019 and emphasizes that over seven years, regulatory frameworks, technical infrastructure, and commercial narratives have matured. The alliance represents a more pragmatic approach by payment giants to compete for dominance in the next-generation dollar settlement pipe.
Yield Redistribution Undermines Circle's Foundation
The launch of the Open USD stablecoin alliance directly challenges Circle and USDC's market position. Its core innovation is a change in reserve yield distribution—interest that issuers previously kept exclusively is now shared with adopting enterprises, fundamentally eroding Circle's profit base. The article recalls the failure of the Libra project (later Diem) in 2019 and notes that after seven years, regulatory frameworks, technical infrastructure, and commercial narratives have matured. This alliance represents payment giants adopting a more pragmatic stance to compete for control of the next-generation dollar settlement pipe.
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