# Coinbase Backs a USD Coin Rival, and Circle's Chief Says Network Effects Decide the Fight

The company that helped create USD Coin is now supporting Open USD, exposing the tension between the firms that issue dollar tokens and those that distribute them.

- Published: 2026-07-02T10:29:52.207Z
- Canonical: https://polylog.news/crypto/2026-07-02/coinbase-backs-a-usd-coin-rival-and-circle-s-chief-says-netw
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CryptoSlate](https://cryptoslate.com/coinbase-helped-build-usdc-why-its-now-backing-the-stablecoin-trying-to-replace-it-open-usd/), [CryptoSlate](https://cryptoslate.com/circle-ceo-says-open-usd-must-break-usdcs-network-effect-before-its-140-backers-matter/)

Coinbase, which helped build USD Coin (USDC) with Circle, is now backing a competing dollar token called Open USD, a move that reflects a basic tension in the stablecoin business, CryptoSlate reported. Issuers take in customer cash, hold re…

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