BlockBeats News, July 1st, Circle Co-founder and CEO Jeremy Allaire published a systematic response to investors' concerns about the emerging stablecoin OUSD, emphasizing that stablecoins are a long-term accumulation of platform and network effects business, with a winner-takes-all characteristic. USDC's network strength comes from a triple barrier:

First is developer and application integration network effects: Thousands of services have integrated USDC, with each integration amplifying network utility, forming a positive flywheel of developer preference and user stickiness;

Second is liquidity network effects: USDC is now the world's third-largest digital asset by liquidity, alongside BTC and USDT, while the liquidity of other USD stablecoins is only one-tenth of it and highly concentrated on a single trading platform for promotional purposes. The USDC liquidity landscape is dispersed across dozens of exchanges, establishing this global liquidity foundation took nearly a decade;

Third is deep integration of policy and regulation: USDC is the only large-scale global stablecoin that covers both Europe and Japan. Circle continues to invest in the global banking system, reserve management, and nearly 24/7 liquidity infrastructure. Artemis data shows that in Q1 2026, USDC processed nearly $30 trillion in on-chain transactions, accounting for 80% of all USD stablecoin transaction volume.

In response to the core selling points of OUSD's promotion, Allaire responded point by point:

First, while free minting and redemption are theoretically attractive, in market reality, a stablecoin with strong redemption capability, good liquidity, and zero fees will naturally become competitors' exit channels. Circle addresses this issue through a contractual mechanism rather than a blanket fee waiver.

Second, the "shared returns for everyone" sounds good in theory, but Circle has already distributed most of the revenue to distribution partners while retaining enough income to continue investing in making USDC a global utility infrastructure. "Giving away all revenue will only starve the infrastructure."

Third, although the alliance governance model is attractive, its track record in terms of scaling and product agility is extremely poor. Large corporate group coordination is poor, incentives are inconsistent, and alliance operations are often stifled by self-interest. Circle had previously attempted a similar model in the early days of USDC, even encountering endless challenges on a small scale. Small, focused strategic partnerships and independently driven business relationships almost always come out on top.

Allaire also made it clear that Circle's stablecoin partnership with Coinbase remains strong, with both parties seeing significant opportunities to expand the USDC network. He is optimistic about the overall growth of the stablecoin ecosystem, welcoming OUSD's participation. He also revealed that Circle is continuously expanding its cooperation with dozens of other stablecoin issuers through platforms such as Arc, CCTP, CPN, StableFX, and Agent Stack, even though some partners compete with Circle in other areas of business.

Yesterday evening, Open Standard announced the launch of Open USD, a new stablecoin backed by over 140 companies including Visa, Stripe, Mastercard, BlackRock, and Coinbase. According to BIT market data, in response to this news, Circle's stock price plummeted over 16% on Tuesday, but has since rebounded by 1.55% in pre-market trading.