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Circle Shares Plummet on Rival Stablecoin Rumors
4 Jun
Summary
- Major financial companies are reportedly developing a new stablecoin.
- Circle's stock price experienced a nearly 11% decline.
- Visa, Mastercard, and Stripe are named as key players in the new venture.
Circle Internet Group (CRCL) experienced a notable stock decline of nearly 11% recently. This downturn followed a report indicating that several major financial companies are preparing to launch a competing stablecoin. The report, originating from CoinDesk, cited unnamed sources suggesting that Visa, Mastercard, and Stripe are at the forefront of this new stablecoin platform. Coinbase Global, a prominent crypto exchange, is also reportedly considering participation.
These companies have previously developed their own stablecoin capabilities. Notably, Coinbase and Circle co-founded the Centre Consortium to govern USDC. However, the specifics of the new stablecoin initiative by Visa, Mastercard, and Stripe remain undisclosed. Despite the uncertainty, the potential scale of such a project poses a significant competitive threat to established stablecoins like USDC and Tether.
