Circle CEO Cites Nearly $30 Trillion In USDC Flows To Dismiss OpenUSD

Circle CEO Jeremy Allaire dismissed the threat from OpenUSD, a stablecoin backed by more than 140 companies, saying nearly $30 trillion in quarterly USDC (USDC) transfers secures its lead.

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Allaire Rejects OpenUSD Threat

Allaire laid out his position in a detailed Jul. 1 post on X, responding to investor questions one day after the Open Standard consortium unveiled its token. The group counts Visa, Mastercard, Stripe, Coinbase and BlackRock among more than 140 backers. OpenUSD promises zero-fee minting and redemption and plans to share reserve earnings with partners once it launches later this year, initially on networks including Solana (SOL) and Base.

The Circle chief argued that stablecoins reward incumbents because liquidity, integrations and regulatory approvals compound over years of sustained investment. He cited Artemis data showing USDC processed nearly $30 trillion in on-chain transactions during the first quarter, roughly 80% of all dollar stablecoin volume, with Tether's USDT (USDT) handling most of the rest.

On the rival's headline pitch of free minting, Allaire countered that Circle already manages large-partner economics through direct contracts rather than a blanket fee exemption. Handing nearly all reserve income to partners, he argued, amounts to "a recipe for starving an infrastructure." The executive also insisted that Circle's partnership with Coinbase, itself a backer of the new token, remains intact.

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Circle Stock Slide and Analyst Verdicts

Circle shares slumped more than 17% to $62.63 on Jun. 30, their weakest close in four months. FTSE Russell removed the stock from five growth indexes in its annual reshuffle the same day, forcing index funds to sell, though the shares recovered about 5% on Wednesday.

Several analysts read the drop as emotion rather than structural damage. Skeptics pointed to failed consortium projects such as the Meta-backed Diem and to Paxos' Global Dollar Network, which has gathered only about $3 billion in supply since late 2024. "I remain highly skeptical any of these initiatives can hit scale," wrote Lorenzo Valente, director of digital asset research at Ark Invest.

Jefferies took the opposite view. The bank advised clients against buying the dip, warning that pressure on Circle is unlikely to ease as banks, payment firms and fintech platforms roll out stablecoins of their own.

The selloff extends a punishing year for a stock that has whipsawed since its market debut. Circle priced its initial public offering at $31 in June 2025 and touched an intraday record near $299 within weeks of listing. The shares have lost more than half their value since mid-May.

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