Circle president backs USDC as new rival pressures CRCL stock

Circle President Heath Tarbert has defended the company's long-term strategy after Circle shares fell sharply from their post-IPO peak.

Summary

• Circle says USDC's scale and network effects remain difficult for new stablecoin competitors to replicate.
• Open USD adds pressure as Circle shares trade far below their post-IPO peak near $260.
• Circle keeps expanding regulated infrastructure while investors question competition, margins, and future stablecoin revenue sharing.

Speaking in a July 14 interview with FOX Business, Tarbert said management remains focused on building financial infrastructure rather than reacting to short-term moves in the stock.

The interview came as Circle faced growing investor concern over competition in the stablecoin market. CRCL had traded near $260 after its public debut before falling toward the low $60 range. Tarbert said Circle is "playing the long game" and argued that successful execution would eventually support shareholder value.

Tarbert points to USDC network effects

Tarbert said Circle's main focus remains building a full-stack internet financial platform around USDC and related infrastructure. He argued that the company's position cannot be measured only through daily stock movements and said the stock should "take care of itself" if Circle delivers on its wider mission.

He also defended USDC against new competitors. Tarbert pointed to roughly $73 billion in circulation and native support across 34 blockchains, saying those network effects would be "incredibly hard to replicate." Circle describes USDC as a regulated digital dollar used across trading, payments and settlement.

Open USD adds new pressure to Circle

The comments came after Open Standard launched Open USD, a planned stablecoin backed by more than 140 participating businesses. The group includes Visa, Mastercard, Stripe, BlackRock, BNY and Coinbase. Open Standard says partners can mint and redeem Open USD without fees and receive reserve earnings after a management charge.

As reported by crypto.news, Circle shares fell 17.5% to $62.63 after Open USD entered the market and CRCL left several Russell Growth indexes. The decline added to concerns about whether new stablecoin models could pressure Circle's economics.

Wall Street has also raised questions about that competition. Crypto.news reported that Mizuho cut its Circle price target to $50, arguing that Open USD's revenue-sharing structure could pressure margins and raise distribution costs.

Circle faces pressure over USDC economics

Circle's challenge extends beyond new stablecoin issuers. JPMorgan lowered earnings forecasts for Circle and Coinbase after a new revenue-sharing agreement tied to USDC balances on Hyperliquid. The bank said stronger adoption could come with lower reserve income retained by the companies.

Tarbert pushed back on the idea that competitors can quickly reproduce USDC's reach. He also described USDC as the largest regulated stablecoin and said it leads in actual transaction volume, presenting scale and existing distribution as key parts of Circle's competitive position.

Circle keeps expanding regulated infrastructure

Circle has continued adding regulated infrastructure despite the stock decline. On July 10, the company received final OCC approval to establish Circle National Trust. The trust bank will initially provide digital asset custody, with USDC reserve management planned as a possible future service.

As reported by crypto.news, the approval places the new entity under direct federal supervision. Circle says the structure could support wider institutional use of its digital asset infrastructure.

Tarbert's comments frame the stock decline against a wider contest for stablecoin distribution and reserve income. Open USD brings a large group of payment and financial companies into the market, while Circle continues betting that USDC's existing network and regulated infrastructure will support its long-term position.