Why did Circle Internet Group shares fall after Open USD launched?

Circle Internet Group shares fell as much as 20% as investors viewed Open USD as competition for USDC.

What does Open USD mean for USD Coin (CRYPTO:USDC)?

USD Coin (CRYPTO:USDC) faces another competing stablecoin, but major partners said they plan to continue supporting multiple tokens.

Coinbase said it met conditions to renew its Circle agreement and plans to keep growing the USDC ecosystem.

Visa described its strategy as “multi-coin, multi-chain”, allowing clients to connect with stablecoins that gain adoption.

Mastercard already supports USDC and other stablecoins, while planning to add Open USD across its network.

Image for illustrative purposes only. Not a real photo.

Written by Brie CarterPublished Aug 5, 2026, 6:24 AM

Circle Internet Group shares fell as much as 20% after Open USD announced more than 140 partners.
Coinbase, Visa and Mastercard said they still support USD Coin (CRYPTO:USDC).
Executives said they favour supporting multiple stablecoins rather than choosing one digital dollar network.

Circle Internet Group shares fell as much as 20% after Open USD announced more than 140 launch partners.

Investors initially viewed backing from Coinbase, Visa and Mastercard as a direct USDC threat.

“Our role is not to pick winners,” said Visa CEO Ryan McInerney.

Coinbase said it remains committed to USD Coin (CRYPTO:USDC), while supporting other stablecoins customers choose.

Open USD’s launch erased billions from Circle’s market value, while its shares have yet to recover fully.

Visa launched a stablecoin platform last month with Open USD as its first supported token.

Analysts said USDC and Tether (CRYPTO:USDT) retain deep liquidity, making Open USD adoption more challenging despite its partners.

25 days ago

Circle bought more than 680 blockchain patent families with nearly 1,000 issued patents from IBM to support USDC and other blockchain products.