Circle CEO Defends USDC Edge as New Rival OUSD Enters Market
Circle's CEO is leaning on network strength as OUSD emerges to challenge the USDC-Tether stablecoin duopoly, per Bernstein analysts.
The stablecoin throne room just got a new contender. Bernstein analysts are calling OUSD the most credible threat yet to the Circle-Tether duopoly that has dominated the space for years. That's a bold call — and Circle's CEO isn't sitting still for it.
Circle is doubling down on its network advantage as its primary defense. The argument is simple: USDC is already deeply embedded across chains, exchanges, and institutional rails. Switching costs are real, and network effects compound over time. That's a moat worth talking about.
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But Bernstein isn't handing OUSD the crown just yet. The analysts flagged serious unresolved questions around governance, how daily operations will run, and — critically — how revenue gets shared among stakeholders. Those aren't minor footnotes. In the stablecoin business, the details of who captures yield and who controls the levers can make or break a project.
For traders, this is worth watching closely. A legitimate third player in the stablecoin market could reshape liquidity dynamics, DeFi integrations, and even fee structures across major protocols. Competition forces innovation, and right now both Circle and Tether have been coasting on incumbency. OUSD entering the picture changes the calculus — at least on paper.
The real test comes when OUSD has to answer those Bernstein questions in public. Governance transparency and revenue-sharing clarity will determine whether institutions take it seriously or treat it as another also-ran. Until then, USDC holds the edge. Continue reading at Cointelegraph.
