Open Standard's announcement of Open USD a month ago sent Circle's market value down 20 percent. The new stablecoin consortium, backed by more than 140 launch partners, sparked concerns that some of USDC's largest commercial allies were shifting allegiance to a rival digital dollar.
Recent earnings calls from Coinbase, Visa and Mastercard tell a more complicated story. Executives from all three firms said they intend to support multiple stablecoins, describing Open USD as another network to integrate rather than a direct USDC competitor.
Coinbase Chief Financial Officer Alesia Haas told investors during the company's second-quarter earnings call last week that the exchange has met conditions to renew its commercial agreement with Circle. Coinbase plans to continue expanding the USDC ecosystem.
Coinbase CEO Brian Armstrong reinforced the platform's multi-stablecoin strategy. He said Coinbase already supports USDC alongside Tether's USDT and PayPal's PYUSD, and views Open USD as creating additional business and revenue opportunities.
Visa CEO Ryan McInerney said his firm is multi-coin and multi-chain. McInerney said Visa's role is to help clients connect to whichever stablecoins gain adoption and that the company does not pick winners.
Despite that stance, Visa has taken concrete steps to integrate Open USD. The firm launched its Visa Stablecoin Platform last month, giving banks, fintechs and payment providers tools to access, store, redeem and move stablecoins. Open USD is the initial supported token on the platform.
Mastercard CEO Michael Miebach confirmed his company's support for various stablecoins, including USDC and the Paxos-led Global Dollar Network. Miebach said Mastercard will enable Open USD across its network, with customer choice as a key criterion.
Miebach characterized Open USD as a payments-focused utility with shared economics. He acknowledged that governance would not involve all 140-plus partners, saying such a structure would hinder progress. Mastercard and its recently acquired BVNK are also ecosystem members of the Global Dollar Network.
The initial market reaction reflected a broader shift in the stablecoin market. Once dominated by crypto-native issuers like Circle, the sector now sees increasing participation from banks, payment networks and fintech firms as regulation clears a path for wider digital dollar adoption.
The competitive fight has moved beyond token issuance. The real battle is over payment rails, exchanges and financial platforms that control user access and transaction flow—making distribution infrastructure the critical variable.
Analysts said market observers may have overread the initial Open USD partner list. An Open Standard spokesperson declined to comment on the executives' remarks or the project's governance, saying the firm will share more details at its official launch later this year.
Circle's shares have not recovered from their initial 20 percent drop, despite the public statements from its key commercial partners.
