Circle’s stock took a beating on June 30, dropping more than 16% after a consortium of over 140 companies, including Visa, Stripe, Coinbase, Mastercard, and BlackRock, unveiled a new stablecoin called Open USD (OUSD). Circle CEO Jeremy Allaire responded by making the case that OUSD will struggle to compete with USDC’s entrenched network effects, deep liquidity, and regulatory infrastructure.
A who’s-who of global finance and payments backing a stablecoin designed to redistribute most of its reserve earnings to partners. But whether OUSD can actually dent USDC’s roughly $73-74B market cap is a question with a complicated answer.
What Allaire is actually saying
Allaire’s defense was pointed and specific. He called USDC “the most trusted, widely adopted, institutional-ready stablecoin in the world.”
Regulatory reach is where Allaire might have his strongest card. Circle went through the grueling process of going public on the NYSE. It holds state money transmitter licenses and has built relationships with regulators across multiple jurisdictions. OUSD’s licensing and operational structure remain unclear, with key details still pending ahead of its planned launch later in 2026.
