Circle shares fell sharply on Tuesday, after a consortium of more than 140 companies, including Visa, Mastercard, Coinbase, and Blackrock, unveiled a new stablecoin built to compete directly with USDC.
Key Takeaways:
Circle shares fell 16.5% on June 30, 2026, after Open Standard unveiled the OUSD stablecoin.Coinbase and Blackrock are among 140 backers of OUSD, pressuring Circle’s USDC reserve income.Circle’s Coinbase distribution deal renews in August as OUSD targets a launch later in 2026.Coinbase’s role stands out. Circle paid Coinbase close to $908 million in 2024 for USDC distribution, and that revenue-sharing agreement renews in August. Coinbase backing a yield-sharing rival adds pressure to that negotiation.
Skepticism From Wall StreetLorenzo Valente, Director of Digital Asset Research at Ark Invest, called the announcement a familiar pattern. He pointed to past consortium attempts like Diem and the Global Dollar Network and said a board representing 500 competing firms moves too slowly to challenge issuers that can ship products on their own.
What Comes NextCircle has not issued a detailed public response. CEO Jeremy Allaire has previously pointed to USDC’s reliability and established position when competitors have entered the market.
Traders watching Circle stock will likely focus on the August renewal of the Coinbase distribution deal and any public comments from Circle as OUSD moves toward launch.
