USDC’s Top Partners Still Back Circle Despite Open USD Launch

Circle’s stock dropped sharply after Open USD launched with backing from Coinbase, Visa and Mastercard, sparking fears of a direct challenge to its $72 billion USDC stablecoin. Shares fell 20% and haven’t recovered, especially after 140+ partners joined the new consortium.

Executives Clarify Their Position

Recent earnings calls tell a different story. Coinbase CFO Alesia Haas confirmed the company renewed its Circle partnership and remains a multi-stablecoin platform supporting USDC, USDT, and PYUSD. CEO Brian Armstrong called Open USD an added revenue opportunity, not a replacement.

Visa CEO Ryan McInerney said his company stays “multi-coin, multi-chain” and won’t pick winners, though Visa did launch Open USD as the first token on its new Stablecoin Platform. Mastercard CEO Michael Miebach said Open USD is simply another coin his network will support alongside USDC and USDG.

Analysts Say Reaction Was Overblown

ARK Invest’s Lorenzo Valente called the backing a “soft LOI,” not a real commitment. Clear Street’s Owen Lau said USDC’s liquidity advantage makes adoption far harder than signing partners.