Coinbase just backed a stablecoin designed to kill its own…
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Coinbase just backed a stablecoin designed to kill its own $908M deal with Circle
Yesterday was a strange day in crypto as stripe, visa, mastercard, blackrock, coinbase and over 140 other companies announced a new stablecoin called open USD. Circle the company behind USDC immediately dropped 17%
so coinbase and circle built usdc together and under their current agreement, coinbase earns 100% of reserve income from usdc held on its platform and splits off platform income 50-50 with circle which paid coinbase roughly $908 million in 2024 and its up for renewal in August and coinbase just publicly signed onto a rival stablecoin explicitly designed to redirect that exact revenue stream away from issuers and toward distribution partners.
Open usd's entire pitch is that it shares reserve income with the 140+ businesses using it instead of keeping it at the issuer level and stripe said OUSD will become the default stablecoin for businesses on its platform. blackrock which manages the actual assets backing USDC's reserves is also backing the competitor ,the people closest to circle's business turned up on the other side of the table.
Consortiums of 140 companies with competing interests are genuinely hard to hold together and it is clear that the stablecoin market which tether and usdc have split between them for years got the most serious institutional challenge it's ever seen. If you are holding usdc on any platform including ones like bitpanda (like me) that supports it, the underlying issuer dynamics shifted in ways that will play out over the next 12 months.
Tether ceo paolo ardoino's response was simply "Welcome OUSD. Player 2 has entered the game."
Does anyone actually think OUSD displaces USDC?
#cryptocurrency
Yesterday was a strange day in crypto as stripe, visa, mastercard, blackrock, coinbase and over 140 other companies announced a new stablecoin called open USD. Circle the company behind USDC immediately dropped 17%
so coinbase and circle built usdc together and under their current agreement, coinbase earns 100% of reserve income from usdc held on its platform and splits off platform income 50-50 with circle which paid coinbase roughly $908 million in 2024 and its up for renewal in August and coinbase just publicly signed onto a rival stablecoin explicitly designed to redirect that exact revenue stream away from issuers and toward distribution partners.
Open usd's entire pitch is that it shares reserve income with the 140+ businesses using it instead of keeping it at the issuer level and stripe said OUSD will become the default stablecoin for businesses on its platform. blackrock which manages the actual assets backing USDC's reserves is also backing the competitor ,the people closest to circle's business turned up on the other side of the table.
Consortiums of 140 companies with competing interests are genuinely hard to hold together and it is clear that the stablecoin market which tether and usdc have split between them for years got the most serious institutional challenge it's ever seen. If you are holding usdc on any platform including ones like bitpanda (like me) that supports it, the underlying issuer dynamics shifted in ways that will play out over the next 12 months.
Tether ceo paolo ardoino's response was simply "Welcome OUSD. Player 2 has entered the game."
Does anyone actually think OUSD displaces USDC?
#cryptocurrency
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