Coinbase, Visa, Mastercard back USDC alongside Open USD stablecoin
In brief
- Circle stock fell 20% after Open USD announcement, but has yet to recover
- Coinbase, Visa, Mastercard commit to supporting multiple stablecoins simultaneously
- Open USD launched with 140+ partners; governance limited to core backers
- Analysts view consortium backing as soft commitment rather than strategic bet
The Backers Aren't Abandoning USDC
Coinbase CFO Alesia Haas said the exchange has already met the conditions to renew its commercial agreement with Circle and will continue growing the USDC ecosystem. That's a direct signal to markets: Coinbase isn't hedging its bet on USDC. The exchange already supports USDC alongside Tether's USDT and PayPal's PYUSD.
CEO Brian Armstrong described Coinbase as a "multi-stablecoin platform" and said the exchange wants to support whichever stablecoins customers choose. He also said Open USD is creating "additional business opportunities and revenue opportunities" — framing it as a supplement, not a substitute.
Visa and Mastercard: Choice, Not Winners
Visa CEO Ryan McInerney described the company as "multi-coin" and "multi-chain" during earnings. Visa's role is to help clients connect to whichever stablecoins gain adoption, not to pick winners. The firm last month launched its Visa Stablecoin Platform, giving banks, fintechs and payment providers tools to access, store, redeem and move stablecoins, with OUSD serving as the initial supported token.
Mastercard CEO Michael Miebach said the company already supports USDC, Paxos-led Global Dollar Network (USDG), and other stablecoins. He described Open USD as "another coin that we will enable across our network." Choice has always been a key criteria and will be the same in stablecoins, Miebach added. Open USD is a payments-focused utility with shared economics, but governance won't involve all 140-plus partners — a pragmatic acknowledgment that consensus slows decision-making.
The Analyst Take: Soft Commitment
Not everyone sees deep conviction behind the Open USD backing. ARK Invest's Lorenzo Valente said the commitment from Open USD's partners is closer to a soft letter of intent than a strategic bet. Supporting Open USD is very different from committing meaningful resources, distribution, or balance sheet to making it win, he said.
Bluechip Ratings director Amey Dandawate told CoinDesk that joining the consortium amounts to "a free option" that allows companies to participate without real exposure. The math is simple: if Open USD gains traction, they're in. If it doesn't, they've lost nothing.
A Shifting Stablecoin Landscape
The stablecoin sector was once dominated by crypto-native issuers like Circle. Now it's drawing banks, payment networks and fintech firms eager to issue or distribute digital dollars as regulators clarify the rules. That competition is real — but the executives backing Open USD are saying it won't come at USDC's expense. They're building rails, not replacing them.
Frequently asked questions
Why did Circle's stock fall after Open USD launched?
Investors initially saw Open USD as a threat to Circle's $72 billion USDC stablecoin. However, executives from Coinbase, Visa and Mastercard have since clarified they plan to support multiple stablecoins rather than replace USDC, suggesting the sell-off may have been an overreaction.
Are Coinbase, Visa and Mastercard abandoning USDC for Open USD?
No. Coinbase renewed its commercial agreement with Circle and continues supporting USDC alongside other stablecoins. Visa and Mastercard describe themselves as multi-stablecoin platforms that help clients connect to whichever coins gain adoption, not pick winners.
What is Open USD and how many partners does it have?
Open USD is a payments-focused stablecoin utility with shared economics, announced by Open Standard and backed by Coinbase, Visa and Mastercard. The launch included more than 140 partners, though governance remains limited to core backers.
