Circle Internet Group Inc. (NYSE:CRCL) stock plunged more than 16% on Tuesday after Open Standard formally launched Open USD, a new stablecoin backed by a broad coalition of major financial and technology companies.
The decline reflects investor concerns that the new entrant could challenge the adoption and enterprise market share of Circle’s USD Coin (CRYPTO: USDC).
Open USD Launch Raises Competitive Pressure
Open Standard said Tuesday that Open USD is designed for global money movement. Businesses can mint and redeem the stablecoin without fees or volume limits.
The organization said partners will receive reserve earnings after management fees. An independent board representing participating partners will oversee governance of the stablecoin.
