The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move that reshapes the stablecoin landscape, three of the biggest names in the digital economy have backed a rival network to Circle’s USDC. According to CoinDesk reports, Circle’s stablecoin USDC fell 8% after Stripe, Coinbase, and BlackRock supported Open Standard’s Open USD network. The new network allows partners to retain reserve income and eliminates minting fees, posing a direct competitive threat to USDC.
Sign in to access this content
Sign InThe backing by such major players marks a shift in the stablecoin market, giving Open Standard leverage to attract partners away from Circle’s network. Although USDC remains the second-largest stablecoin by market cap, this development could alter the balance of power in the multi-billion-dollar market.
USDC’s price remains under pressure following the sharp decline, with expectations that Open Standard may announce further partnerships soon. Investors are also watching for potential regulatory developments that could impact the entire stablecoin sector amid intensifying competition between networks.
Update: New reports reveal that over 140 companies, including Visa, Mastercard, and Ripple, have joined the launch of the Open USD stablecoin, massively expanding the rival coalition to USDC. Businesses will be able to mint and redeem the coin without fees or volume limits, with reserve revenue shared among partners, according to the updates expected to launch later this year.