Coinbase and Partners Reaffirm Support for USDC Amid OUSD Launch

Circle's USDC stablecoin faced a significant challenge when OpenUSD (OUSD) was launched, causing Circle's shares to plummet by as much as 20%. However, key partners Coinbase, Visa, and Mastercard have clarified their stance on OUSD, stating they will stick to a multi-stablecoin strategy.

According to recent earnings calls, Coinbase's Chief Financial Officer Alesia Haas said the company had already met the terms required to renew its commercial agreement with Circle and would continue expanding the USDC ecosystem. Coinbase CEO Brian Armstrong added that the company wants to support whatever stablecoins customers choose because it operates as a multi-stablecoin platform.

Visa's Chief Executive Officer Ryan McInerney said the company's role is to help customers connect regardless of which stablecoin wins adoption, not to pick winners. Mastercard's CEO Michael Miebach stated that the company already supports several stablecoins, including USDC and USDG, and would support OUSD as well.

Some market analysts believe the initial reaction was excessive, with ARK Invest's director of digital asset research Lorenzo Valente saying OUSD partners' level of participation looks more like a non-binding letter of intent than a strategic bet. Supporting OUSD is very different from committing meaningful resources, distribution, and capital to make it successful.