Circle Internet Group shares fell sharply on Tuesday after a consortium of more than 140 financial, technology, and cryptocurrency companies unveiled plans to launch a new US dollar-backed stablecoin, raising concerns about increased competition in the fast-growing stablecoin market. Circle CRCL stock dropped more than 16% in trading, while Coinbase Global shares also declined after the announcement. Investors viewed the new initiative, called Open USD (OUSD), as a potential challenge to Circle’s USD Coin (USDC), one of the world’s largest dollar-backed stablecoins.
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