Coinbase helped build USDC – Why is it now backing the stablecoin trying to replace it, Open USD?

- Coinbase is playing 4D chess with Circle, and the board is on fire. They’re backing Open USD (OUSD), a stablecoin consortium including Visa and BlackRock that promises to strip-mine the yield from distribution partners. Basically, Coinbase wants its cut of the "aggressive passive income" generated by the $320B stablecoin market. Circle’s CEO Jeremy Allaire is sweating, citing USDC’s liquidity moat and calling corporate coalitions "predictably slow-moving." Translation: he knows his meat wallet is being pilfered by the very partner who helped build it. Coinbase holds 25% of circulating USDC; now they want a seat at the table for OUSD’s zero-fee model. It’s not just competition; it’s a hostile takeover of the revenue stream. The market reacted instantly, dropping Circle shares 16%. If you thought yield was free, you’re still paying the toll.