Open USD Backers Reassure on Support for Multiple Stablecoins
When Open Standard announced Open USD in June, investors quickly interpreted the backing from Coinbase (COIN), Visa (V) and Mastercard (MA) as a direct challenge to Circle (CRCL) and its $72 billion USDC stablecoin.
The announcement erased billions of dollars from Circle's market value. Shares fell as much as 20%, and have yet to recover, as the consortium unveiled more than 140 launch partners, fueling concerns that some of USDC's largest commercial partners were lining up behind a rival digital dollar.
However, recent earnings calls from Open USD's highest-profile backers paint a more nuanced picture. Executives at Coinbase, Visa and Mastercard all said they intend to support multiple stablecoins instead of betting on a single winner, describing Open USD as another network to connect to rather than a replacement for USDC.