On Tuesday, when Open USD came online, the Circle stock price fell sharply. The Yahoo financial data show that Circe received US$ 62.65 that day, a decrease of 17.52 per cent over the previous transaction date, touching US$ 62.52 at one time and opening price of US$ 72.25.
This decline took place at a time when the market reassessed its stable currency business model. Open USD does not follow the traditional single issuer-driven path, but rather allocates more of its reserves to ecological participants, directly into the institutional stable currency cooperation network.
Open USD main ration mode
Open USD by Open Standard, an industry organization. The organization was led by Bridge co-founder Zach Abrams, with over 140 companies involved, supported by financial and scientific institutions such as BlackRock, Google, Visa, Coinbase.
Unlike the usual stable currency model, Open USD offers a fee-free casting and foreclosure service, while most of the reserve income is allocated to ecological members. It is not controlled by a single issuer, but by an independent partner organization.
This design was designed to target more than an encrypted trade scene. As the stable currency moves into cross-border payments, business settlements and business capital management, an increasing number of institutions are beginning to try to use different revenue structures to attract access to banks, payment companies and financial science and technology platforms.
Circle responds to competitive pressures
In the face of new competitors, the CEO of Circle Jeremy Allaire stated that the stable currency market was large enough to accommodate many successful distributors. He claims that the launch of Open USD will not change the long-term plan of the Circle to expand USDC.
Allaire states that the Circe will continue to expand the network of USDC ' s institutional cooperation by adding new banking, payment and capital market partners, and will continue to invest in infrastructure development to enhance the ability of USDC to interact with different block-chain networks.
He added that Circe would continue to connect USDC to more block-chain networks and promote deeper integration with banks, payment companies, capital market institutions and business clients, while expanding the economic opportunities for partners to participate in USDC eco-growth.
Competition for market interest agency shares
While Circe stressed that the strategy had not changed, the immediate response to stock prices showed that investors were concerned about whether the silvicultural currency would change the way the industry competed. The new model may put pressure on existing issuers, particularly in the context of a greater focus by institutional clients on the distribution of proceeds, settlement efficiency and incentives for cooperation.
Open USD, supported by a number of large financial and technological companies, also means that stable currency competition is shifting from simple tokens to a match of payment networks, cooperative divisions and institutional capacity. For Circe, the brand and existing network of USDC remain the advantage, but the market has begun to re-pricing its future growth space.