Shares of Circle (CRCL) fell about 13% on Tuesday after Open USD, a new stablecoin backed by more than 140 companies, including BlackRock, Google, Visa and Coinbase, was unveiled.
The stock fell to about $65, its lowest level in four months, before recovering, per Yahoo Finance.
Developed by Open Standard and led by Bridge co-founder Zach Abrams, the initiative is the latest effort by major financial and technology firms to build a shared stablecoin infrastructure.
The launch comes as stablecoins increasingly power global payments, merchant settlement and corporate treasury operations. Open USD seeks to differentiate itself through fee-free minting and redemption, distribution of most reserve income to ecosystem participants and governance by an independent, partner-led organization instead of a centralized issuer.
The approach directly targets one of Circle’s key revenue streams and mirrors the incentive structures used by Paxos’ Global Dollar Network.
