Circle's Stock Hit by Open USD Launch, Yet Backers Remain Committed to USDC

Following the announcement of Open USD, a new stablecoin initiative backed by Coinbase, Visa, and Mastercard, concerns arose regarding its potential to rival Circle's USDC, resulting in a significant drop in Circle's market value.

Executives from Coinbase, Visa, and Mastercard Emphasize Support for Multiple Stablecoins

By Krisztian Sandor|Edited by Nikhilesh De Aug 4, 2026, 5:55 p.m. 4 min read

• The debut of Open USD, which has backing from major players like Coinbase, Visa, and Mastercard, initially raised alarms about its competition with Circle’s USDC, leading to a substantial loss in Circle’s market capitalization.
• However, executives from these companies clarified their intent to adopt a multi-stablecoin approach, indicating that Open USD is meant to function as an additional network rather than supplant USDC.
• Experts suggest that while Open USD's partner list appears impressive, actual commitments from these partners may be limited, with existing stablecoins like USDC and USDT holding more significance in terms of liquidity and usage.

When Open Standard revealed Open USD about a month ago, the involvement of Coinbase (COIN), Visa (V), and Mastercard (MA) was perceived as a direct threat to Circle (CRCL) and its USDC, valued at $72 billion. This led to a dramatic decline in Circle's stock, with shares dropping by as much as 20% and failing to recover since then, as the consortium announced over 140 launch partners, raising fears that USDC's key commercial allies were shifting to a competitor.

This reaction also highlights a significant transition within the stablecoin sector, which has evolved from being primarily dominated by a few crypto-native issuers like Circle to an arena attracting banks, payment networks, and fintech companies eager to issue digital dollars as regulatory conditions improve. Consequently, the competitive landscape is broadening, focusing not just on token issuance but also on securing the necessary payment infrastructure and platforms to facilitate user access.

Recent earnings calls from the prominent backers of Open USD, however, reveal a more complex scenario. Executives from Coinbase, Visa, and Mastercard expressed their commitment to supporting a variety of stablecoins rather than favoring just one, framing Open USD as an additional option rather than a direct competitor to USDC.

Strategic Approach to Multiple Stablecoins

During its second-quarter earnings call, Coinbase sought to reassure investors about its ongoing collaboration with Circle. Chief Financial Officer Alesia Haas noted that the exchange has fulfilled the requirements to renew its commercial agreement with Circle and plans to continue enhancing the USDC ecosystem.

Coinbase CEO Brian Armstrong reiterated that the platform remains committed to being a "multi-stablecoin platform," supporting various stablecoins that customers prefer to use. Currently, Coinbase supports USDC, Tether's USDT, and PayPal's PYUSD, with Open USD presenting "additional business and revenue opportunities."

Similarly, Visa CEO Ryan McInerney indicated during his firm’s earnings call that Visa adopts a "multi-coin, multi-chain" strategy, emphasizing its role in connecting clients to whichever stablecoins achieve popularity. "Our role is not to pick winners," he stated.

In a notable move, Visa recently launched its Visa Stablecoin Platform, which enables banks, fintechs, and payment providers to manage stablecoins, with Open USD as the first supported token.

Mastercard CEO Michael Miebach mentioned that the company supports USDC, the Paxos-led Global Dollar Network (USDG), and other stablecoins, describing Open USD as "another coin that we will enable across our network." He emphasized that consumer choice remains a critical factor in the stablecoin market.

Miebach characterized Open USD as a utility focused on payments, acknowledging that governance would not include all of the 140-plus partners. He stressed that a more streamlined governance approach is necessary to make progress. Mastercard and its recent acquisition, BVNK, are also part of the USDG consortium, which includes Robinhood among its members.

While an Open Standard representative did not comment on the remarks from executives regarding governance, they indicated that further details will be shared at the project's launch later this year.

Understanding Support Versus Commitment

The statements from executives suggest that observers might have overestimated the significance of Open USD's partner list, according to analysts.

Lorenzo Valente, director of digital asset research at ARK Invest, remarked on X that the commitments from Open USD's partners seem more like soft letters of intent than strong strategic investments. "Supporting OUSD is very different from committing meaningful resources, distribution, or balance sheet to making it win," he noted.

Amey Dandawate, director at Bluechip Ratings, described joining the consortium as a "free option" for companies, allowing them to engage if Open USD gains momentum without substantial upfront investments.

Others have cautioned that execution will be more crucial than the seemingly impressive size of the partnership list. Owen Lau, managing director at Clear Street, remarked that the market overreacted to the initial announcement, noting that USDC and Tether's USDT already enjoy significant liquidity and network advantages, making adoption a greater challenge than merely signing partners. He stated, "It is very difficult to align the interests of so many partners with different incentives and agendas," but acknowledged that the involvement of Visa, Mastercard, and Coinbase could boost stablecoin adoption in consumer payments, regardless of which token ultimately prevails.

Dragonfly general partner Rob Hadick pointed out that the executives' comments reinforced his belief that Stripe is the primary force behind Open USD, while Visa and Mastercard have commercial motivations to remain neutral due to their relationships with competing issuers. "Their businesses require them to not alienate partners and customers," he explained. "They may push OUSD, but they must be open."