Open USD Emerges as a Real Challenge to Circle's USDC

The stablecoin 'Open USD' is challenging Circle Internet Group's USDC. CoinShares has analyzed that Open USD has the potential to reshape the stablecoin revenue structure, which could put pressure on USDC's reserve profit model. Open USD adopts an 'interest revenue sharing' structure, sharing interest income with participating companies while only taking management fees. If this model succeeds, stablecoins could offer a more attractive economic structure for businesses. Open USD involves over 140 companies, including BlackRock, Coinbase, and Visa, and aims for a launch in the second half of 2026. The circulation of USDC has decreased from $80 billion in March to $73 billion currently, attributed to intensified competition. While CoinShares believes the threat from Open USD may be limited, Japan's Mizuho has downgraded Circle's target price from $85 to $50. The market's attention is focused on whether Circle will modify its distribution strategy and the actual adoption of Open USD.