Consortium Targets Circle's USDC with Revenue-Sharing Stablecoin Model

The newly formed Open USD consortium is preparing to launch a dollar-backed stablecoin designed to challenge Circle's USDC, according to cryptovka.com. Unlike traditional stablecoin issuers that keep interest earned on reserves, the consortium plans to distribute those yields to its partners.

cryptovka.comOpen USD Consortium to Launch Yield-Sharing Stablecoin, Challenging Circle's USDC

"Unlike traditional stablecoin issuers that centralize profits from reserve interest, Open USD plans to redistribute reserve yields to its partners."

This yield-sharing model, highlighted in a CoinShares report cited by cryptovka.com, could disrupt the competitive dynamics of blockchain-based finance and liquidity provision, where Circle's USDC currently holds a strong position.

Bars reported that the $300 billion stablecoin industry now has a major new player, raising questions about the impact on Circle's business. The outlet questioned the threat level directly.

BarsThe $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."

That uncertainty reflects the potential for Open USD's partner-centered approach to lure liquidity providers away from USDC, though it remains to be seen how the market responds to the consortium's model.