Open USD poses biggest threat yet to Circle's USDC, CoinShares says

FinanceOpen USD poses biggest threat yet to Circle's USDC, CoinShares saysThe consortium-backed stablecoin would share reserve income with partners instead of the issuer, pressuring Circle's margins if it debuts in 2026.By Will Canny, AI Boost|Edited by Sheldon Reback Jul 15, 2026, 2:03 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowCoinShares said Open USD directly challenges Circle by giving partners income generated by reserves backing the stablecoin, undermining USDC's distribution economics.Open USD comprises more than 140 companies, including BlackRock, Coinbase, Mastercard, Stripe and Visa. The stablecoin is expected to debut in the second half of 2026.Despite the threat, CoinShares said USDC’s established liquidity and integrations could prove difficult for any newcomer to replicate.Open USD, a bank-backed group developing a dollar-pegged stablecoin, is the most credible threat yet to Circle Internet's (CRCL) USDC because it targets the economics at the heart of the company’s business, crypto asset manager CoinShares said in a Monday report.Unlike traditional stablecoin issuers, who keep the income generated by their reserves, Open USD plans to distribute the yield to participating businesses, retaining only a management fee. CoinShares said the model could squeeze Circle's margins while raising the cost of maintaining USDC distribution.“If successful, Open USD could push stablecoins further into mainstream payments by making the economics and governance more attractive for the businesses actually using them,” wrote analyst Luke Nolan.Developed by Open Standard, the institutional-focused stablecoin is backed by a consortium of more than 140 companies, including BlackRock (BLK), Coinbase (COIN), Mastercard (MA), Stripe and Visa (V), and is targeting a second-half 2026 launch. Key details, including its reserve structure and fee model, remain undisclosed.The model also stre…

Open USD poses biggest threat yet to Circle's USDC, CoinShares says

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