CoinShares stated that the stablecoin project Open USD, backed by a consortium with banking industry roots, could directly challenge Circle’s USDC distribution model and profit margins by allocating reserve earnings to participating partners rather than primarily retaining them with the issuer. The report suggests this mechanism may increase the cost for USDC to maintain its network and could pose a more substantial competitive threat to Circle after its launch in the second half of 2026.
CoinShares: Open USD Could Pose the Greatest Threat to Circle's USDC
TechFlowShare
Summary
Federal Reserve news suggests that Open USD, a stablecoin backed by a banking consortium, could challenge Circle’s USDC. CoinShares notes that Open USD’s revenue-sharing model may disrupt USDC’s profitability by distributing reserve earnings to partners, potentially increasing USDC’s costs and intensifying competition following the announcement of Open USD’s token launch in late 2026.
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