Circle's Rivals Gain Momentum Amid Multi-Stablecoin Support
When Open Standard announced its new digital dollar, Open USD, investors reacted negatively to the backing of major players Coinbase (COIN), Visa (V) and Mastercard (MA). Circle's market value plummeted by billions as shares fell up to 20% in a single day.
The announcement sparked concerns that some of USDC's largest commercial partners were defecting to Open USD. However, recent earnings calls from the key backers revealed a different story.
Coinbase Chief Financial Officer Alesia Haas reassured investors about its close relationship with Circle and stated that Coinbase remains a multi-stablecoin platform. CEO Brian Armstrong added that they support multiple stablecoins, including USDC, Tether's USDT, and PayPal's PYUSD.
Visa CEO Ryan McInerney described the company as 'multi-coin, multi-chain' and emphasized that Visa's role is to help clients connect to whichever stablecoins gain adoption. Mastercard CEO Michael Miebach also stated that his firm supports multiple stablecoins, including USDC and Paxos-led Global Dollar Network (USDG).
Analysts note that the commitment from Open USD's partners appears to be more like a 'soft letter of intent' rather than a strategic bet.