Open USD Emerges as Circle’s USDC’s Biggest Threat, Says CoinShares

A bank‑backed stablecoin venture called Open USD is positioning itself as a direct competitor to Circle's USDC.

Core Innovation: Yield Shared with Businesses

Unlike traditional stablecoin issuers that retain reserve earnings, Open USD plans to distribute the yield to participating enterprises, keeping only a management fee.

Institutional Backing and Launch Timeline

■The consortium includes 140+ firms, featuring heavyweights such as BlackRock, Coinbase, Mastercard, Stripe, and Visa.

■Target launch: H2 2026.

■Reserve structure and fee model remain undisclosed.

Pressure on Circle

■USDC circulating supply has slipped to $73 billion from $80 billion in March.

■Circle shares dropped more than 17% on the announcement; the decline is partly attributed to technical selling linked to the Russell index reconstitution.

■Mizuho downgraded Circle to underperform and cut the price target to $50 from $85.

Market Reaction and Liquidity Shifts

■CEX spot trading volume rose 15.3%, reaching $1.11 trillion.

■Real‑world asset (RWA) perpetual volumes surged to a record $311 billion.

■While USDT remains the dominant stablecoin, Open USD's progress could further erode USDC's market share.

Markets are treating Open USD with caution due to its pre‑launch status and unresolved details. Nonetheless, the institutional backing and the model of passing yield to businesses could reshape the stablecoin landscape. Monitoring Circle's potential distribution strategy adjustments and the speed of Open USD adoption will be pivotal for short‑term volatility and the longer‑term evolution of the sector.