Svmuu News: Jeremy Allaire, co-founder of Circle, published a post directly addressing competition from OUSD. He stated that stablecoin networks are essentially internet platform businesses that, in the long term, follow a “winner-takes-all or winner-takes-most” structure, with network effects and liquidity serving as decisive factors.On the competitive front, Allaire questioned the “consortium-style stablecoin” model exemplified by OUSD, arguing that multi-party alliance structures are prone to slow decision-making, misaligned incentives, and a lack of long-term execution capacity. He noted that historically, projects such as Diem have demonstrated that this model struggles to scale.Furthermore, while free minting/redemption, yield distribution mechanisms, and governance structure designs may be attractive in theory, the reality of the market requires stable profitability to support infrastructure investments; otherwise, the ability to build the network over the long term may be undermined.
Jeremy Allaire added that Circle will continue to welcome collaboration, working with various institutions and stablecoin issuers to expand the ecosystem while advancing the development of cross-chain and payment infrastructure such as CCTP and CPN. He also welcomed OUSD’s entry into the competitive landscape, noting that network effects will ultimately determine the winner.