Circle Defends Its Long-Term Plan as Stock Faces Heavy Pressure
Circle President Heath Tarbert is staying focused on the future, even as the company’s stock has taken a major hit.
Speaking in a July 14 interview with FOX Business, Tarbert said Circle is not worried about short-term stock price swings. Instead, the company is focused on building long-term financial infrastructure around its USDC stablecoin.
After Circle went public, its stock surged close to $260. Since then, shares have fallen sharply, dropping to the low $60 range. That decline has raised concerns among investors about growing competition in the stablecoin industry.
Tarbert acknowledged the market pressure but said Circle is “playing the long game.” According to him, if the company continues to execute its plans successfully, shareholder value will follow over time.
Circle Believes USDC Has a Strong Advantage
One of Tarbert’s main arguments is that USDC already has a huge network that new competitors will struggle to match.
USDC currently has around $73 billion in circulation and operates natively across 34 different blockchains. Tarbert said building a network of that size takes years and creates powerful advantages that are not easy to copy.
Circle also points to USDC’s role in trading, payments, and settlements. The company believes its scale and broad adoption give it a strong position in the market.
New Rival Open USD Is Creating Concerns
The pressure on Circle increased after the launch of Open USD, a new stablecoin project backed by more than 140 companies.
The group includes major names such as Visa, Mastercard, Stripe, BlackRock, BNY, and Coinbase. Open USD plans to let partners mint and redeem the stablecoin without fees while also sharing reserve earnings with participants.
Investors quickly reacted to the news. Circle shares dropped 17.5% to $62.63 after Open USD entered the market and the company was removed from several Russell Growth indexes.
Many investors are now questioning whether new stablecoin models could reduce Circle’s profits in the future.
Analysts Are Worried About Profit Margins
Some Wall Street analysts believe competition could make it harder for Circle to maintain its current business model.
Mizuho recently lowered its price target for Circle to $50. The firm argued that Open USD’s revenue-sharing structure could force Circle to spend more on distribution and accept lower profit margins.
JPMorgan also reduced earnings forecasts for both Circle and Coinbase. The bank pointed to a new revenue-sharing agreement connected to USDC balances on Hyperliquid, suggesting that stronger adoption may come with lower reserve income for the companies involved.
Circle Continues Expanding Despite the Challenges
Even with the stock decline and growing competition, Circle is still expanding its regulated financial infrastructure.
On July 10, the company received final approval from the Office of the Comptroller of the Currency (OCC) to create Circle National Trust.
The new trust bank will initially provide digital asset custody services. In the future, it may also help manage reserves backing USDC.
The approval places the institution under direct federal oversight, something Circle believes will help attract more institutional users and strengthen trust in its products.
The Bigger Battle Ahead
The stablecoin market is entering a new phase. Open USD is bringing together a large group of financial and payment companies, creating fresh competition for Circle.
At the same time, Circle is betting that USDC’s size, existing user base, and growing regulated infrastructure will give it an edge that newcomers cannot easily match.
For now, investors remain divided. Some worry about rising competition and shrinking margins, while Circle believes its long-term strategy and established network will keep it in a strong position as the stablecoin industry continues to grow.
