Circle Stock Drops 16% After Open USD Shakes the Stablecoin Market

Circle shares fell 16% after Open Standard unveiled OUSD, backed by 140+ firms with zero-fee minting and redemption.

Circle shares dropped 16% after Open Standard announced Open USD, a new stablecoin for global payments and settlement. The move placed USDC’s parent company under fresh pressure.

Open USD, also called OUSD, is expected to launch later this year. The project is backed by over 140 companies across payments, crypto, finance, and technology.

The partner list includes Visa, Mastercard, BlackRock, Coinbase, Stripe, Ripple, Google, Shopify, Bybit, OKX, and Solana. 

Their involvement brings large financial and technology names into the stablecoin race.

Open Standard said OUSD will allow businesses to mint and redeem without fees. It also said the stablecoin will have no artificial limits on volume.

Open USD Targets Large Business Payments

Open Standard described OUSD as a stablecoin built for the internet economy. 

The project is aimed at businesses that need fast and low-cost dollar transfers. It also focuses on companies using digital payments at large scale.

The company said many businesses face high costs when using current stablecoins. Minting and redemption fees can become expensive for large-volume users. 

As a result, Open USD is being positioned as a lower-cost option. OUSD will support zero-fee minting and redemption for business users. 

Open Standard also said there will be no artificial issuance caps. This structure is designed for companies moving large payment volumes.

Consortium Model Changes Stablecoin Structure

Open USD will use a consortium model instead of one main issuer. Open Standard will operate the stablecoin as an independent company. Its board will include partners from the OUSD ecosystem.

The company said partners will share reserve earnings by default. A small management fee will cover operating costs for Open USD. 

This differs from models where one issuer keeps most reserve income. Partners will also take part in governance decisions for the stablecoin. 

Open Standard said this is meant to align the product with business users. The model gives large partners a direct role in its future.

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Circle Faces New Stablecoin Competition

The OUSD announcement added pressure to Circle because USDC is a major stablecoin. 

Circle’s business is closely tied to stablecoin adoption, reserves, and institutional use. A new rival with large partners may affect investor views.

Open USD has not launched yet, so adoption remains untested. Its future role will depend on liquidity, regulation, business use, and platform support. 

However, the partner network gives the project early visibility. Stablecoins are now used for payments, trading, and settlement across crypto markets. 

Open Standard said stablecoin volume is moving closer to ACH network levels. The market will now watch whether OUSD can turn partner support into real use.

The post Circle Stock Drops 16% After Open USD Shakes the Stablecoin Market appeared first on Live Bitcoin News.