Major payment companies are backing multiple stablecoins at once, not picking sides in a battle between OpenUSD and USDC. When The Open Platform launched OpenUSD (OUSD) about a month ago with support from Coinbase, Visa, and Mastercard, markets initially panicked, viewing it as a direct threat to Circle's USDC stablecoin. Circle's stock price fell as much as 20 percent, and concerns deepened when the group announced more than 140 launch partners. But in recent earnings calls, executives from all three companies clarified that backing OUSD doesn't mean abandoning USDC.

What Are Stablecoins and Why Does This Matter?

Stablecoins are digital currencies designed to maintain a stable value, typically pegged to the US dollar or other assets. They're used for payments, trading, and moving money across blockchain networks without the price volatility of cryptocurrencies like Bitcoin or Ethereum. USDC and USDT (Tether's stablecoin) are the two largest by market adoption, so competition among stablecoin issuers directly affects how people move money in crypto and Web3 ecosystems.

The stakes matter because stablecoins are becoming infrastructure for global payments. If one stablecoin wins dominance, it could shape which platforms, exchanges, and payment networks gain power. Conversely, if multiple stablecoins coexist, users and businesses get more choice but face fragmentation and liquidity challenges.

Are Coinbase, Visa, and Mastercard Really Abandoning USDC?

No. Coinbase Chief Financial Officer Alesia Haas stated that the company had already met the terms required to renew its commercial agreement with Circle and would continue expanding the USDC ecosystem. Chief Executive Officer Brian Armstrong added that Coinbase wants to support whatever stablecoins customers choose because it operates as a multi-stablecoin platform. He also noted that OUSD creates additional business opportunities.

Visa and Mastercard struck a similar tone. Visa Chief Executive Officer Ryan McInerney said the company's role is to help customers connect regardless of which stablecoin wins adoption, not to pick winners. Mastercard Chief Executive Officer Michael Miebach stated that the company already supports several stablecoins, including USDC and the Paxos-led Global Dollar Network (USDG), and that OUSD would be another coin supported on its network.

How to Understand the Real Difference Between Supporting and Committing

• Supporting a stablecoin: A payment network or exchange agrees to process transactions using that stablecoin, similar to how Visa accepts multiple card brands. It requires minimal infrastructure changes and no exclusive commitment.
• Committing meaningful resources: A company dedicates capital, engineering talent, and distribution channels to make a stablecoin successful. This is what Circle received from Coinbase and what OUSD partners have not yet provided.
• Non-binding participation: Signing on as a launch partner or investor signals interest but doesn't guarantee long-term support or priority treatment over competing stablecoins.

Market analysts argue that the initial panic was excessive.

"It is becoming increasingly clear OUSD partners' level of participation looks more like a non-binding letter of intent than a strategic bet. Supporting OUSD is very different from committing meaningful resources, distribution and capital to make it successful," stated Lorenzo Valente, ARK Invest's director of digital asset research.

Lorenzo Valente, Director of Digital Asset Research at ARK Invest

Owen Lau, a managing director at Clear Street, noted that USDC and Tether's USDT already benefit from deep liquidity and network effects, making real adoption far more difficult than lining up partners. Coordinating the interests of many partners with different incentives is also very difficult, he added.

Why Payment Giants Must Stay Neutral

Visa and Mastercard face a structural constraint: they work with competing stablecoin issuers and cannot afford to favor one over another without alienating customers.

"Visa and Mastercard effectively have to remain neutral because they also work with competing issuers. They may promote OUSD, but they still need to maintain an open stance," explained Dragonfly General Partner Rob Hadick.

Rob Hadick, General Partner at Dragonfly

This neutrality is a feature, not a bug. It means payment networks will likely support multiple stablecoins simultaneously, allowing users and businesses to choose based on their own preferences, regulatory requirements, or technical needs. The result is a fragmented but competitive stablecoin ecosystem rather than a winner-take-all outcome.

For crypto users and businesses, this means the stablecoin wars are less about dominance and more about coexistence. USDC, USDT, OUSD, and other stablecoins will likely all find niches and use cases. The key takeaway is that major payment infrastructure providers are betting on a multi-stablecoin future, not a single global standard.