Open USD launch spooks Circle, but Coinbase/Visa/Mastercard back multi-stablecoin USDC
Open USD, backed by Coinbase (COIN), Visa and Mastercard, initially sparked fears of a direct challenge to Circle’s USDC and knocked billions off Circle’s market value.
But recent comments from those backers point to a different strategy. Executives said they plan to support multiple stablecoins rather than betting on a single “winner,” framing Open USD as an additional payments rail/network alongside existing tokens.
Coinbase said it has met conditions to renew its commercial agreement with Circle and will keep growing the USDC ecosystem. It described itself as a “multi-stablecoin platform,” already supporting USDC, Tether’s USDT and PayPal’s PYUSD, with Open USD seen as an added revenue opportunity.
Visa echoed a “multi-coin, multi-chain” approach and said its role is to help clients connect to whichever stablecoins gain adoption. It has already moved from signaling to execution via its Visa Stablecoin Platform, starting with Open USD (OUSD).
Mastercard said it already supports USDC and Paxos-led Global Dollar Network (USDG) plus others, describing Open USD as another coin it will enable across its network.
Analysts cautioned that Open USD’s partner list may represent “soft” commitments rather than meaningful distribution or balance-sheet support. They argued that USDC and USDT’s existing liquidity and network effects still matter more than consortium size. However, participation by Visa/Mastercard/Coinbase could still accelerate stablecoin usage in consumer payments regardless of which token ultimately leads.
Neutral
Initial newsflow was bearish for Circle because Open USD’s headline backers appeared to threaten USDC’s dominance, causing a sharp market-value reaction. However, the follow-up guidance shifts expectations: Coinbase, Visa and Mastercard are describing Open USD as a multi-stablecoin layer rather than a replacement for USDC.
This matters for traders. In the short term, sentiment may remain volatile because Open USD has visible institutional branding and early platform support (e.g., Visa Stablecoin Platform starting with OUSD). But the core adoption risk for USDC looks reduced because issuers want “choice,” and analysts note many partners may have limited commitments. Historically, stablecoin narratives often swing on announcements, then stabilize once liquidity/network effects become the real battleground—similar to how markets typically reprice utility tokens after initial consortium headlines.
Long term, the impact is likely neutral-to-modestly supportive for the whole sector: payment networks integrating multiple stablecoins can expand rails and usage. For USDC specifically, the risk is more about share-of-payments than existential displacement. Watch for concrete execution signals: distribution agreements that include balance-sheet or deep liquidity, and measurable on-chain/payment-volume traction for Open USD versus USDC/USDT.