OUSD Stablecoin Launch Sends Circle Stock Down 16%
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- OUSD, a new US dollar stablecoin backed by a coalition of high-profile financial companies, will launch later this year, according to Open Standard.
- Circle Internet Group's share price fell more than 16% on Tuesday to $63.63 following the OUSD announcement, as investors weighed the threat of a new competitor.
- Circle CEO Jeremy Allaire said on X that the company welcomed "continued innovation and competition in the space" and would expand support for both US dollar-pegged and non-US dollar stablecoins.
- Tether's USDT and Circle's USDC are currently the two largest stablecoins by market capitalization, and OUSD is positioned to challenge both.
- The current stablecoin market exceeds $312 billion per DefiLlama, with projections reaching up to $4 trillion by 2030.
- President Trump signed the GENIUS Act into law last year, establishing a regulatory framework for payment stablecoins, though federal authorities are still finalizing implementation rules.
Why it matters: Circle shareholders lost more than 16% in a single session on the prospect of a coalition-backed rival entering a market currently dominated by USDC and Tether's USDT. The projection of up to $4 trillion in stablecoin market value by 2030 — more than 12x today's $312 billion — explains why established financial players see this space as worth contesting now that the GENIUS Act has clarified the regulatory path.
