Cointelegraph·8h ago·neutral

Circle CEO says USDC's network advantage beats new OUSD stablecoin model

Circle CEO Jeremy Allaire argued USDC's decade of integrations and regulatory infrastructure gives it a structural edge over Open USD, the new stablecoin backed by Visa, Mastercard, Coinbase and BlackRock. He questioned whether OUSD's revenue-sharing model is sustainable at scale.

Allaire said permanently free minting and redemption may not be sustainable, and returning nearly all reserve income to partners risks 'starving an infrastructure.'
Bernstein called OUSD the strongest challenger yet to the Circle-Tether duopoly but flagged unresolved governance questions.
ARK Invest noted OUSD faces a cold-start problem: many partners also back competing stablecoins or run their own infrastructure.
Circle shares fell 17.5% on the OUSD announcement before recovering 2.4% in premarket trading.

defimarketImpact 6/10

Why our editor rated this neutral

Competition in stablecoins is healthy for the ecosystem but the outcome is uncertain. Both sides make valid arguments about network effects versus revenue sharing.

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