Circle shares slide 17% as industry giants launch rival stablecoin

Circle closed Tuesday at $62.65, down from an opening of $72.25, while trading volume surged to 34.5 million shares—more than double the company's daily average. The market volatility follows the launch of Open USD (OUSD) by an initiative led by Bridge co-founder Zach Abrams. Unlike the current issuer-led model maintained by Circle, OUSD utilizes a decentralized structure where governance is managed by an independent partner-led organization.

This new entrant directly targets the profitability of stablecoin issuance by offering fee-free minting and redemption, distributing reserve income back to ecosystem members. This approach mirrors the framework recently adopted by Paxos’ Global Dollar Network. Despite the pressure, Circle CEO Jeremy Allaire remains optimistic, characterizing the stablecoin market as sufficiently broad to support multiple players. Allaire stated that Circle will continue to prioritize institutional partnerships and blockchain interoperability, emphasizing that USDC maintains its position as a trusted standard for global enterprise and payment networks.