Circle Stock Faces Competition as US Bank Launches USBDC Stablecoin
- Circle (CRCL) stock price has remained near the flatline amid investor scrutiny of the new USBDC stablecoin from US Bancorp.
- US Bancorp successfully executed its first transaction using USBDC, a dollar-backed stablecoin, between North American and European banking entities.
- As of September 7, the circulation of Circle’s USDC stands at $74.3 billion, highlighting its established position in digital payments.
- A group of 21 financial institutions is working on a joint dollar-pegged stablecoin initiative, aiming for a launch in the first half of 2027.
- Bernstein has set a long-term price target of $140 for CRCL stock, independent of potential outcomes from the upcoming Senate vote on the CLARITY Act.
The launch of USBDC signifies an important shift in the competitive landscape for stablecoins, as traditional banks seek to enhance their roles in digital finance and blockchain settlements.
With USDC’s current circulation at $74.3 billion, Circle must navigate increasing competition from institutions like US Bancorp and others entering the stablecoin market.(Source)
