CoinDesk·3 min read·hard
Open USD poses biggest threat yet to Circle's USDC, CoinShares says
W
Will Canny
✦AI Summary
The upcoming launch of 'Open USD' by a consortium of major financial firms poses a potential competitive threat to Circle's USDC stablecoin. Analysts suggest the new model's yield-sharing structure could pressure Circle's margins and influence the broader stablecoin market.
Unlike traditional stablecoin issuers, who keep the income generated by their reserves, Open USD plans to distribute the yield to participating businesses, retaining only a management fee. CoinShares said the model could squeeze Circle's margins while raising the cost of maintaining USDC distribution.
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