Circle co-founder responds to OUSD competition: Consortium stablecoins are hard to succeed, and it will ultimately be determined by network effects

Odaily Planet Daily News: Circle co-founder Jeremy Allaire openly responded to OUSD competition, stating that stablecoin networks are inherently internet platform-type businesses, exhibiting a "winner-takes-most or winner-takes-all" structure in the long run, where network effects and liquidity are decisive factors. On the competitive front, Allaire questioned the "consortium stablecoin" model like OUSD, arguing that multi-party alliance structures often suffer from slow decision-making, misaligned incentives, and insufficient long-term execution. Historically, similar projects like Diem have proven this model difficult to scale. Additionally, while mechanisms such as free minting/redemption, profit distribution, and governance structure design are theoretically attractive, the real market requires stable profitability to support infrastructure investment; otherwise, long-term network-building capabilities may be undermined.

Jeremy Allaire added that Circle will continue to collaborate openly with various institutions and stablecoin issuers to expand the ecosystem while advancing cross-chain and payment infrastructure projects like CCTP and CPN. He welcomes OUSD to join the industry competition, which will ultimately be decided by network effects.