He contended that the 16% decline in Circle’s share price on Tuesday was disproportionate.
“That appears to be an overreaction,” he stated to CoinDesk.
He referenced Paxos’s Global Dollar Network (USDG), a consortium‑backed stablecoin that distributes reserve income to partners but has yet to achieve substantial market share. Since its late‑2024 launch, USDG’s supply has reached $3 billion, a fraction of USDC’s $73 billion and USDT’s $145 billion, per CoinDesk.
“The key question is how OUSD can persuade consumers and end‑users to adopt its stablecoin,” Lau remarked. “We will only know once the product launches and can assess market capitalization and usage.”
Hadick further warned that forming an industry consortium is uncommonly complex.
“Consortiums are difficult to sustain and can fracture readily,” he observed. “The incentives involved are broad and frequently misaligned.”
“While the Circle stock selloff may appear justified, I do not anticipate an easy path for Open Standard, nor rapid scaling,” Hadick added.
Details still missing
Other observers warned that the announcement raised several unresolved issues.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, noted that Open Standard has assembled an impressive roster of partners and is led by Bridge co‑founder Zach Abrams, who brings relevant expertise.
