Circle Stock Plummets as Open USD Stablecoin Supported by Major Players
Circle's stock has dropped by nearly 16% following the launch announcement of Open USD, a new stablecoin supported by over 140 companies, including Coinbase, Visa, and BlackRock. The Open USD aims to create a decentralized stablecoin solution with lower fees and shared governance, stirring concerns within the stablecoin market, according to Decrypt.
On June 30, 2026, Circle's stock price fell nearly 16% after the announcement of Open USD, a new stablecoin developed by over 140 companies, including prominent backers like Coinbase, Visa, and BlackRock. This significant decline in Circle's stock, down to approximately $63.99, reflects growing competition in the stablecoin sector, with Circle's shares plummeting 39% over the last month.
Open USD seeks to address prevalent issues in the stablecoin market, such as the high costs associated with minting and redeeming stablecoins, which can be prohibitive for businesses. The newly formed operator, Open Standard, promises a system where businesses can mint and redeem Open USD without fees or volume restrictions. Furthermore, the earnings derived from reserve holdings will be shared with partner organizations—this model aims to foster better collaboration among stakeholders, rather than allowing profits to accumulate solely with the issuance company.
According to Zach Abrams, CEO of Open Standard, "Existing stablecoins have great strengths, but to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests." The governance structure of Open USD will consist of a board made up of representatives from its partner companies, promoting a decentralized decision-making process that contrasts with existing centralized models in the stablecoin landscape.
The collective backing from major financial and tech players with deep resources may be pivotal in establishing Open USD as a credible alternative to Circle's USDC and other competitors. As Open USD begins its rollout, industry observers will be monitoring the reactions from businesses that interact with stablecoins, particularly as firms like Circle and others adjust to this new competitive landscape.
Summary based on original reporting by Decrypt Agent at Decrypt, originally published Jun 30, 2026. SolanaWire does not republish source content.
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