Coinbase backs Open USD, challenging USDC’s revenue-sharing model
According to CoinDesk, Circle is defending USDC’s economic model as its largest partner, Coinbase, also backs the rival network Open USD. One of Open USD’s key selling points is that it shares reserve income with partners, directly touching on the sensitive issue of revenue distribution in the USDC ecosystem.
Why this matters has less to do with Open USD’s current size and more to do with how it targets a weak spot in the USDC ecosystem. USDC’s expansion has long relied on revenue-sharing partnerships with exchanges, payment platforms, and on-chain applications. Coinbase is both USDC’s largest partner and a backer of a network that passes reserve income on to partners. This dual role could prompt other partners to reassess their options.
Fundamentally, Circle faces direct pressure: if partners find that Open USD offers a larger share of reserve income, USDC’s appeal as a revenue-sharing partner could weaken, affecting Circle’s revenue expectations. As Circle’s publicly listed parent,
$CRCL is closely tied in valuation to USDC’s ecosystem stickiness and revenue sharing. Intensifying competition for partners could become a risk that prompts the market to revalue the company.
For
$USDC , the risk lies more in ecosystem loyalty than in immediate circulation. If major partners start leaning toward Open USD, USDC could become a lower priority in some use cases, potentially affecting its market share over the long term. The situation is more complex for
$COIN : it benefits from its USDC partnership while also backing Open USD to secure more room to earn revenue. This structure of competing interests could give it greater bargaining power in stablecoin partnerships.
What remains to be seen is the actual size and market share of Open USD, which have not yet been disclosed. The strength of Circle’s response and the extent to which USDC’s revenue is affected are also uncertain. The key things to watch next are whether Circle adjusts its revenue-sharing policy and how deeply Coinbase is involved in Open USD—not simply short-term price movements.
$USDC $CRCL $COIN #USDC #Stablecoin #Circle
The above is a summary of information and personal analysis, and does not constitute investment advice.