Still, he argued that the Circle’s 16% liquidation on Tuesday went too far.
“I think it’s an overreaction,” he told CoinDesk.
He pointed to Paxos’ Global Dollar Network (USDG), another stablecoin backed by a consortium that shares reserve revenue with partners but has yet to gain significant market share. It has grown to a supply of $3 billion since its launch in late 2024, far behind USDC’s $73 billion and USDT’s $145 billion, according to data from CoinDesk.
“The most important question is how OUSD can convince consumers and end users to adopt them,” Lau said. “We don’t really know the answer until it’s fully launched so we can evaluate market cap and usage.”
Hadick also cautioned that creating an industrial consortium is rarely simple.
“Consortia are difficult and break easily,” he said. “Incentives are broad and often misaligned.”
“So while the [Circle] “The liquidation of shares clearly seems reasonable, I also do not expect this to be an easy or direct path for Open Standard and I expect it to be more difficult to scale than expected,” Hadick added.
Details are still missing
Others warned that the announcement left several important questions unanswered.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, said Open Standard has assembled an impressive list of partners and is led by Bridge co-founder Zach Abrams, “who knows what he’s doing.”
