Circle President Heath Tarbert Defends USDC Amid Stock Slide

The company faces intensifying pressure following the launch of Open USD, a project backed by industry heavyweights including Visa, Mastercard, and BlackRock. This new entrant has sparked investor anxiety regarding Circle’s future margins and revenue-sharing potential. Adding to the bearish sentiment, Mizuho recently slashed its price target for CRCL to $50, citing concerns that new stablecoin models will drive up distribution costs and erode profitability. JPMorgan analysts have also cooled their outlook, pointing to revenue-sharing agreements that may diminish the reserve income Circle retains from USDC balances.

Tarbert dismisses these threats by highlighting USDC’s massive scale, noting $73 billion currently in circulation and native integration across 34 blockchains. He argues that such depth is difficult for rivals to replicate. To bolster its market position, Circle secured final OCC approval on July 10 to establish the Circle National Trust. This move brings the company under federal supervision, a step leadership believes will attract institutional users despite the current volatility in public markets.