Circle falls 16% after OUSD stablecoin reveal
- Circle shares fell 16.5% after Open Standard unveiled the OUSD stablecoin, backed by more than 140 companies including Coinbase and BlackRock.
- The proposed stablecoin would distribute reserve income to participating partners, challenging Circle's USDC revenue model.
- Analysts said OUSD still faces execution risks, while investors are watching Circle's Coinbase distribution agreement due for renewal in August.
Circle Internet Group shares fell 16.5% on 30 June 2026 after Open Standard unveiled the Open USD (CRYPTO:OUSD) stablecoin, which is backed by more than 140 financial and technology companies.
The stock closed at about US$63.10, down from a previous close of US$75.96, extending a decline of more than 40% over the past 30 days, as investors assessed how OUSD's revenue-sharing model could affect USDC (CRYPTO:USDC).
“I’d bet on the two operators who can ship unilaterally over a committee that has to ask 500 rivals for permission,” said Ark Invest Director of Digital Asset Research Lorenzo Valente.
Open Standard said OUSD will allow fee-free minting and redemption while distributing reserve income to participating partners instead of retaining it with the issuer, and Coinbase's support has drawn attention because its USDC distribution agreement with Circle is due for renewal in August.
Valente said consortium-led stablecoin projects have historically struggled to compete with established issuers, while Circle has not issued a detailed public response to the OUSD announcement, and following the news Circle shares were down 16.5% at US$63.10.
The stablecoin market has grown beyond US$300 billion, with Tether (CRYPTO:USDT) holding about US$184 billion in market capitalisation and USDC (CRYPTO:USDC) holding roughly US$74 billion, according to the figures cited in the report.
Open Standard said OUSD is expected to launch later in 2026, while investors are expected to monitor the renewal of Circle's Coinbase agreement and the project's progress toward commercial launch.
