The $300 Billion Stablecoin Industry Has a Major New Player. What Does It Mean for Circle Stock?
Just how big a threat is Open USD to Circle's thriving stablecoin business? We're about to find out.
Overview
At the end of June, a consortium of 140 different fintech companies, banks, tech companies, and crypto-native companies announced their support for a brand-new stablecoin known as Open USD.
The launch of Open USD could have an immediate effect on Circle Internet Group (NYSE: CRCL), issuer of the USDC (CRYPTO: USDC) stablecoin. While USDC currently ranks as the second-largest stablecoin in the world, with a $73 billion market cap, it has never looked more vulnerable. So what happens next for Circle and USDC?
Details
Many investors think the launch of the new Open USD stablecoin could be the death knell for Circle's highly lucrative stablecoin business. Stablecoin issuers hold U.S. treasury assets to ensure a 1:1 peg to the U.S. dollar, and earn interest on those holdings. Thus, the bigger a stablecoin becomes, the more money a stablecoin issuer can earn from its dollar reserves.
Source
Originally published at www.fool.com.