Bridge executive: Tether and Circle's dominance is generally detrimental to stablecoins.
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Tether CEO: EU MiCA regulations are "very dangerous" for stablecoins; abandoning the application was to protect users.
PANews reported on July 2nd that, according to Coin Bureau, Tether CEO Paolo Ardoino explained why USDT did not apply for an EU MiCA license, stating that the regulation is "very dangerous for stablecoins." He indicated that MiCA could force issuers to hold 60% of their reserves in uninsured cash deposits at small European banks, which might be unable to handle large-scale redemptions. Ardoino believes the legislation is "poorly considered" and stated that "skipping MiCA is to protect Tether's more than 400 million users."
Circle CEO Responds to Competition Concerns Regarding OUSD: Stablecoins are Winner-Take-All! USDC's Decade-Long Network Effect Creates a Triple Moat
According to Mars Finance, on July 1st, Circle co-founder and CEO Jeremy Allaire responded to investors' questions regarding the competition from the emerging stablecoin OUSD, emphasizing that stablecoins are a business built on long-term platform and network effects, with a significant winner-takes-all characteristic. USDC's network strength stems from three barriers: First, the network effect of developer and application integration: thousands of services have integrated USDC, each integration amplifies network utility, forming a positive flywheel of developer preference and user stickiness; Second, the liquidity network effect: USDC is currently the third most liquid digital asset globally, alongside BTC and USDT, while other USD stablecoins have only one-tenth of its liquidity and are highly concentrated on promotional accounts on a single trading platform. USDC's liquidity is dispersed across dozens of exchanges, and it took nearly a decade to build this global liquidity foundation; Third, deep integration of policy and regulation: USDC is the only large-scale global stablecoin simultaneously covering Europe and Japan, and Circle continuously invests in the global banking system, reserve management, and near-24/7 liquidity infrastructure. Artemis data shows that USDC processed nearly $30 trillion in on-chain transactions in Q1 2026, accounting for 80% of all USD stablecoin transactions. Allaire addressed OUSD's core selling points point by point: First, while free minting and redemption are theoretically attractive, the market reality is that stablecoins with strong redemption capabilities, high liquidity, and zero fees naturally become exit channels for competitors. Circle addresses this issue through contractual mechanisms rather than general fee waivers. Second, while "everyone sharing the profits" sounds appealing, Circle has already distributed most of its revenue to distribution partners, while retaining sufficient revenue to continuously invest in the infrastructure that makes USDC a global utility—"distributing all revenue will only starve the infrastructure." Third, while the consortium governance model is attractive, its history of scaling and product agility is extremely poor. Large corporations often suffer from poor coordination, inconsistent incentives, and self-interest that stifles consortium operational investment. Circle attempted a similar model in the early days of USDC, encountering immense challenges even on a small scale; small, focused strategic partnerships and independently driven business partnerships almost always prevailed. Allaire also explicitly stated that Circle's stablecoin partnership with Coinbase remains strong, with both parties seeing significant opportunities to expand the USDC network. He expressed optimism about the overall growth of the stablecoin ecosystem, welcomed OUSD, and revealed that Circle is continuously expanding its partnerships with dozens of other stablecoin issuers through platforms such as Arc, CCTP, CPN, StableFX, and Agent Stack, even though some of these partners compete with Circle in other areas of their business. Last night, Open Standard announced the launch of OpenUSD, a new stablecoin backed by over 140 companies including Visa, Stripe, Mastercard, BlackRock, and Coinbase. According to BIT (bit.com) market data, Circle's stock price fell over 16% on Tuesday as a result, but has since rebounded briefly to a 1.55% gain in pre-market trading.
Tether co-founder Reeve Collins: Current stablecoins have structural flaws; the new protocol STBL adopts a dual-token structure to allow users to earn yield.
PANews reported on June 21 that Tether co-founder Reeve Collins pointed out in an interview that the current stablecoin model has a structural flaw: after users deposit US dollars, the issuer invests the funds in assets such as US Treasury bonds (currently yielding 3-4%), with all interest income going solely to the issuer. Users only gain payment convenience but cannot share in the profits. To address this issue, Collins launched STBL, a next-generation decentralized stablecoin protocol. This protocol uses a dual-token structure, separating stable payment tokens and interest-bearing tokens, allowing users to automatically accumulate profits while trading. Furthermore, the protocol allows any institution, such as banks, brands, and sports teams, to issue their own stablecoins on it, choosing their assets and profit distribution rules.
Tether co-founder: Stablecoins are entering the 2.0 era; in the future, users should share in the reserve returns.
According to ChainCatcher, citing FinanceFeeds, Tether co-founder Reeve Collins stated that the stablecoin industry is entering its "2.0 era." He noted that current stablecoin infrastructure still suffers from structural problems, and the next generation of solutions needs to address the issue of users not receiving returns from reserve assets. The core logic of the stablecoin 1.0 model is "users provide $1, issuer issues 1 token," but users only gain payment and transfer convenience without sharing in reserve returns. In the future, financial services will gradually become infrastructure, and "users won't care which bank sends the funds." AI agents may choose different financial ecosystems based on user interests. The next stage of competition in stablecoins will revolve around financial infrastructure and return distribution models. Regarding regulatory issues, Reeve Collins disclosed that he still holds Bitcoin long-term, while pointing out that dollar-denominated stablecoins are essentially still an extension of the US financial system, facing regulatory risks and differing from central bank digital currencies (CBDCs), which may offer stronger programmability and financial monitoring capabilities.
US-listed crypto stocks generally closed lower, with Circle falling over 17%.
According to BlockBeats, on July 1st, based on market data, most US-listed crypto stocks closed lower. Circle (CRCL) fell 17.55%, Strategy (MSTR) fell 6.20%, Bitmine Immersion (BMNR) fell 3.55%, SharpLink (SBET) fell 2.44%, Bullish (BLSH) fell 1.10%, and Gemini Space (GEMI) rose slightly by 0.71%.
Coinbase executive: We are integrating derivatives, tokenized securities, DeFi, and stablecoins into a unified financial platform.
According to Foresight News , citing TheStreet Roundtable, John D'Agostino, Coinbase's head of institutional sales, stated in an interview at the New York Stock Exchange that Coinbase is committed to migrating its existing financial infrastructure from decades-old ledger systems to faster, cheaper, and more stable blockchain ledgers, with the goal of becoming a fully integrated financial platform in the crypto space. D'Agostino points out that Coinbase's current growth primarily comes from four areas: First, derivatives, where the company acquired Deribit, the world's largest crypto options exchange, for $2.9 billion last year, becoming a market leader in the field; second, tokenized securities, having already tokenized approximately 20 stocks and continuing to expand, and including assets such as REITs in its tokenization scope, which he estimates to be worth approximately $15 trillion; third, DeFi, where Coinbase has become the official USDC treasury deployer on the Hyperliquid platform, with approximately $5 billion in USDC revenue from the platform being used to buy back HYPE tokens; and fourth, stablecoins, continuously deepening USDC's coverage in the on-chain market. He summarizes Coinbase's positioning as, "The safest custody of crypto assets is our fundamental moat, while our super-fast growth comes from securitizing everything and creating universal applications."