Jefferies Warns Against Buying Circle Dip as Open USD Alliance Launches

USDC-0.03%
According to CoinDesk, Circle's stock fell 17% on Tuesday (July 2) following the launch of the Open USD stablecoin alliance, with Jefferies analysts cautioning investors against buying the dip. The investment bank cited the competitive threat to Circle's approximately 25% stablecoin market share, noting that the Open USD alliance has backing from over 140 companies and includes Coinbase, Circle's largest distribution partner. Jefferies highlighted that Circle and Coinbase's commercial agreement is set to renew in August, potentially further constraining USDC's growth. Circle CEO Jeremy Allaire countered that stablecoin networks require years of accumulated integration and liquidity that cannot be quickly replicated.
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