OpenUSD Jolts Circle Shares as USDC Network Holds Firm

Circle’s exposure to USDC depends not only on issuing the dollar token but also on the distribution network around it. Coinbase, a longtime partner, held more than 25% of USDC in circulation, or about $19 billion on average, across its products in the first quarter of 2026. Open USD challenges that model by promising fee-free minting and redemption and returning most reserve income to participating businesses, raising questions about Circle’s margins and USDC’s moat.

Open Standard unveiled Open USD on June 30, 2026, with backing from more than 140 companies, including Coinbase, Visa and Mastercard. Circle shares fell nearly 16% that day to $63.99. Executives at the three backers have since framed their involvement as part of a multi-stablecoin strategy, not a withdrawal of support for USDC, and OUSD is not expected to go live until later in 2026. Analysts say adoption will hinge on execution and whether OUSD can overcome USDC’s deep liquidity and entrenched network effects.

Issuers have long retained all interest earned on reserves in the $160 billion global market for U.S. dollar stablecoins. That lucrative model is now under pressure as new issuers seek to attract yield-sensitive institutions by sharing reserve profits with partners, potentially challenging the market position of incumbent leader Circle.

Crypto asset manager CoinShares said in July 2026 that a new dollar stablecoin, Open USD, was expected to launch in the second half of 2026. Its profit-sharing model would pose a commercial threat to Circle’s USDC, which retains 100% of the returns. However, USDC’s established liquidity and integration advantages remain difficult barriers for a new entrant to replicate.