A new battle is beginning in the stablecoin market. Now, issuers are competing not only with reserves and capitalization, but also over who can control payment infrastructure, access to banks, liquidity, and income from the assets backing the token. It is in this context that Circle responded to the emergence of Open USD—a new project attempting to enter the market through a broad coalition of partners.
Circle CEO Jeremy Allaire stated that USDC’s advantage was built over years. According to him, a stablecoin of this scale is not just a token pegged to the dollar, but a network of integrations, permissions, banking relationships, reserve management, and liquidity. Such a layer cannot be quickly copied with a single announcement, even if large companies are behind the new project.
The New Project Wants to Change Stablecoin Economics
Open Standard introduced Open USD and announced support from more than 140 participants from the payments, banking, technology, and crypto industries. The list includes major card networks, payment companies, exchanges, asset managers, and technology platforms. The token launch is expected later in 2026.
The main idea of the new project is to give businesses more influence and, likely, a larger share of the income from reserves. This is an important shift. In stablecoins, large sums are earned not only from turnover but also from interest on the assets backing the issued tokens. Therefore, the competition is gradually shifting from simple liquidity to the question: who gets the economics of this network.
For Circle, this model looks questionable. Allaire pointed out that constant free issuance and redemption of tokens without restrictions could be burdensome for large-scale infrastructure. Another risk is the near-total return of income to partners. If the network does not have enough money left for technology, security, compliance, and development, it could quickly run into operational constraints.
A Coalition Does Not Equal Liquidity
A strong list of partners helps attract attention but does not solve the main question of a stablecoin—where it will actually be used. USDC and USDT are already integrated into exchanges, wallets, protocols, payment routes, and corporate processes. The new token must not just appear, but convince market participants to move to a less developed environment.
This is called the cold start problem. A user chooses not the stablecoin with the prettiest press release, but the one that is easiest to buy, sell, send, accept as payment, and use as collateral. As long as the new asset lacks sufficient depth, it is forced to compete with already familiar routes.
Therefore, Allaire’s statement essentially boils down to one thesis: Circle is protecting not the USDC ticker, but a ready-made network. This network already has liquidity, counterparties, legal infrastructure, trading pairs, and institutional connections. The new project will have to build all this in real time.
Bernstein Sees Threat to Market Leaders
Bernstein analysts believe that Open USD could become the strongest new contender in a market currently dominated by Circle and Tether. The reason is not the technology itself, but the breadth of declared support. If payment networks, banks, crypto platforms, and technology companies actually start using a single common dollar token, it could quickly gain traction.
But Bernstein also pointed out weaknesses. It is still unclear how management will be structured, who is responsible for operations, how income from reserves will be distributed, and how the interests of dozens of major partners will be aligned. The more participants, the harder it is to make decisions, especially when it comes to money, control, and risks.
The bank also reminded that a large-scale stablecoin requires significant spending. According to Bernstein, Circle spends about $500 million on marketing, infrastructure, technology, and compliance. This shows that issuing a token is only the beginning. What follows is the expensive and complex work of maintaining the network.
Skeptics See OUSD as an Intention, Not a Threat
ARK Invest assessed the initiative more cautiously. Director of Research Lorenzo Valente called Open USD more of a major letter of intent than a ready competitor for the leaders. His main argument is that many of the declared participants are already connected with other stablecoins or are developing their own solutions.
For example, Stripe owns Bridge and is building its own payment infrastructure. Coinbase is closely tied to USDC. Banks are testing deposit tokens. Card networks usually support various digital assets rather than betting on just one. Therefore, being on the partner list does not mean that every company will actively promote the new token as its main product.
This makes the situation less clear-cut. On the one hand, Open USD has a rare starting resource—access to big names. On the other, each of these players already has its own interests, technologies, and partnerships. Coordinating them into a single network will be harder than announcing a launch.
Circle Shares Show Nervous Reaction
The market quickly reacted to the emergence of a potential competitor. Circle shares fell sharply and closed at $62.63, losing 17.55% for the session. Then the stock partially recovered in premarket trading, rising to about $64.18.
Such a reaction shows that investors take the threat seriously. USDC remains one of Circle’s key assets, and income from reserves is an important part of the company’s economics. If new projects start promising partners a larger share of this income, Circle will have to defend not only its market share but also its margin.
At the same time, the drop in shares does not mean that the balance of power has already changed. Rather, the market has started to price in the risk of tougher competition. For Circle, this is a signal: USDC’s scale alone is no longer enough; it must continue to prove the value of its infrastructure.
Stablecoins Begin the Fight for Income
The main shift in the sector is that stablecoins have become a profitable infrastructure business. As long as rates remain high, reserves bring significant income to issuers. Now, partners, payment networks, exchanges, and technology companies are starting to fight for this income.
Open USD is trying to exploit this weak point in the existing model. If businesses are offered more participation and more economic benefit, they will have an incentive to support the new token. But the more income goes to partners, the less is left for the development of the network itself.
This is where the main dispute between Circle and the new project lies. Some talk about a fairer distribution model. Others respond that without large, constant investments, a stablecoin cannot become a reliable financial infrastructure.
What Comes Next?
Open USD could become a serious player if the declared partners move from formal support to real use of the token. For this, listings, wallets, payment routes, a transparent reserve model, clear management, and a working issuance and redemption mechanism are needed. Without these elements, even a strong coalition will remain just a loud promise.
Circle, in turn, will defend USDC through what has already been built: liquidity, regulation, integrations, and market habit. This does not guarantee eternal leadership, but gives a strong advantage over any new entrant. In stablecoins, trust is formed not on launch day, but through years of stable operation.
The main takeaway is simple. Open USD is trying to attack the market through partnerships and redistribution of reserve income. Circle responds that the real barrier is not the list of companies in a press release, but infrastructure, liquidity, and operational resilience. Therefore, the fight for stablecoins is less and less about tokens and more about competition between financial networks.
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