Big Firms Launch New Stablecoin, Erase $3. 3B From Rival Circle
A massive new stablecoin calledOpen USD (OUSD)launched yesterday, backed by a consortium of over 140 financial and tech giants includingVISA,Mastercard, andBlackRock. The consortium model, which shares the. . .
A massive new stablecoin calledOpen USD (OUSD)launched yesterday, backed by a consortium of over 140 financial and tech giants includingVISA,Mastercard, andBlackRock. The consortium model, which shares the interest from reserve assets with partners, is inspired byHyperliquid‘s USDH and directly threatensCircle‘s profitableUSDCbusiness. Investors reacted by panicking out ofCircle‘s stock,collapsingits price by 17% and erasing $3. 3 billion in market value in a single day. Yesterday, a powerful consortium of financial titans includingVisa,Mastercard,Stripe, andBlackRocklaunchedOpen USD (OUSD), a new stablecoin designed to compete directly withCircle‘s USDC. Its economic model, which shares the yield from its reserves, was inspired byHyperliquid‘s earlier USDH stablecoin. - Advertisement -Consequently, investors immediately sold off shares ofCircle Internet Group, causing its stock to plummet. The company lost $3. 3 billion in market capitalization as its common stockcollapsedby 17% during Tuesday’s trading session. The consortium model represents a fundamental threat to Circle’s business. While Circle keeps most yield from its $73 billion in USDC reserves, OUSD partners will receive most of the interest from its US Treasury holdings. This profitable structure is why stablecoin issuance is so lucrative. Tether, for example,claimsto be one of the world’s most profitable companies per employee. Hyperliquidpioneered this shared-yield approach with USDH in 2025. Its governancevoteinvolved bidders competing to offer the largest share of reserve yield back to the ecosystem. - Advertisement -Open Standard, the OUSD operator, frames its stablecoin as an open and aligned alternative. Its launch postarguesbusinesses need something “aligned to their interests. ”CircleCEO Jeremy Allairetriedto calm markets, stating“USDC remains the most trusted, widely adopted, institutional-ready stablecoin in the world. ”However, CRCL stock closed at $62. 63, now 76% below its 52-week high. ✅ FollowBITNEWSBOTonTelegram,Facebook,LinkedIn,X. com, andGoogle Newsfor instant updates. Previous Articles:Microsoft Accelerates Quantum Encryption Shift to 2029Ray Dalio Warns AI Bubble Forming, Says Paper Wealth May BurnWeb3 Warsaw 2026 — Eastern Europe’s Largest Blockchain Conference Returns This SeptemberAzure CLI Hit By Massive Password Spray AttackMichael Burry Shorts Tesla at $416 Ahead of Q2 ReportStay in the Loop🔥Join 1. 2K Smart TradersGet exclusive crypto insights, breaking news, and market analysis delivered straight to your inbox. No fluff, just facts.