CRCL, COIN Stocks Drop After Visa Backs USDC Rival Stablecoin Open USD

• The announcement comes less than a month after Open USD launched, increasing competitive pressure on Circle's core stablecoin business.
• Clear Street on Thursday also initiated coverage of Visa with a 'Buy' rating and a $403 price target, citing the company's leadership in digital payments.
• The drop in CRCL and COIN stocks also came alongside pressure on crypto-linked equities, with Bitcoin’s price struggling to remain above the $65,000 mark.

Circle Internet (CRCL) shares dropped in midday trade on Thursday after Visa (V) announced its new stablecoin platform built around Open USD, the rival stablecoin that has been pressuring Circle's core USDC (USDC.X) business since its late-June launch. 

CRCL’s stock slipped over 5% in midday trade, while Visa’s stock gained over 1.5%. Shares of Circle’s stablecoin partner Coinbase (COIN) also dropped around 2%. On Stocktwits, retail sentiment around Circle’s shares and COIN’s stock remained in ‘bullish’ territory over the past day. Sentiment around Visa rose to ‘bullish’ from the ‘neutral’ zone.

The drop in CRCL and COIN stocks also came alongside pressure on crypto-linked equities, with Bitcoin (BTC) struggling to remain above the $65,000 mark. Bitcoin’s price was down 1% in the last 24 hours, trading at around $64,400 after hitting an intra-day high of over $65,100.

Retail sentiment around the apex cryptocurrency on Stocktwits fell to ‘bearish’ from ‘neutral’ territory over the past day. 

Visa Bets On Open USD

On Thursday, Visa introduced the Visa Stablecoin Platform (VSP), an enterprise platform designed to help financial institutions, fintech companies, and crypto-native firms access stablecoin payments through Visa-managed infrastructure.

The payments giant said the platform will initially support Open USD, allowing customers to issue, store, transfer, and redeem stablecoins through a single integration.

The announcement adds to the competitive challenges facing Circle. Since Open USD launched on June 30, investors have increasingly viewed it as a credible challenger to USDC because of backing from several major payments, banking, and crypto companies. 

Wall Street Turns Positive On Visa

Visa's stock gain also came alongside fresh analyst coverage. Clear Street analyst Owen Lau initiated coverage of Visa with a ‘Buy’ rating and a $403 price target. The firm called the company “the world's largest open-loop retail payments network” and one of the highest-quality compounders within its scope of coverage. 

It added that Visa was a "toll-taker" on the multi-decade shift from cash to digital payments, pointing to adjusted operating margins exceeding 67% as evidence of the business's durability.

CRCL’s stock has dropped over 20% this year, and COIN’s stock has fallen nearly 30%. Meanwhile, Visa shares have risen over 3% year-to-date.

Read also: Tom Lee Compares Ethereum To AMZN Before AWS, NVDA Before AI Boom – Says ETH Could Solve  'Uncanny Valley Of Wealth'

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