Payment Giants Back New Open USD Stablecoin as Circle Shares Slide

The presence of both Visa and Mastercard is notable, given the central role the two networks play in global card payments and their growing interest in blockchain-based settlement. US Bank and Google add further heft from traditional banking and big tech, signalling that appetite for stablecoin infrastructure is spreading well beyond crypto-native firms.

Why Circle's Stock Reacted

The announcement landed hard on Circle, the company behind the widely used USDC stablecoin. As Decrypt reported, Circle's stock fell on the news, in part because Coinbase — a key backer of USDC — is among the firms lining up behind the new Open USD project. Coinbase's involvement in a competing effort raises questions about the future dynamics of one of crypto's most important commercial relationships.

The overlap matters because USDC's distribution and adoption have leaned heavily on Coinbase's exchange and ecosystem. A rival stablecoin supported by the same partner introduces uncertainty about market share in a sector where network effects and institutional backing are decisive.

What It Means for the Europe Corridor

For businesses operating between Europe and other markets, a heavily backed dollar stablecoin could offer faster and cheaper cross-border settlement than legacy rails. Stablecoins have increasingly been positioned as a tool for treasury management, merchant payments and remittances, and the involvement of Visa and Mastercard suggests Open USD may be designed to plug into existing payment flows rather than sit outside them.

European regulators have already moved to formalise stablecoin oversight through the Markets in Crypto-Assets (MiCA) framework, which sets requirements for issuers operating in the bloc. How Open USD navigates those rules will help determine whether the token gains traction with European institutions and payment providers.

The details reported so far are limited: the sources confirm the roster of backers and a launch planned for later this year, but do not specify the issuer's regulatory approach, reserve structure or how Open USD will differ technically from incumbents such as USDC. Those questions are likely to shape both competitive positioning and adoption across the Africa–Europe and transatlantic corridors as launch approaches.

Circle had not, according to the available reporting, detailed its response to the new competitor.

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