Circle Internet Group (CRCL) shares plunged Tuesday following the launch of a rival stablecoin. A consortium of over 140 companies, including Visa, BlackRock, and Alphabet, unveiled the Open USD (OUSD) token. This venture, named Open Standard, directly challenges Circle’s core USDC product.
The OUSD model allows partners to mint and redeem tokens for free. Participating companies receive the majority of earnings from the stablecoin’s reserves. This revenue-sharing structure attracted key partners like Coinbase, a major USDC distributor.
Circle’s stock fell more than 10% during the session. The decline occurred while broader market indices traded higher.