Circle Internet shares fell over 5% on Thursday following the announcement of a new stablecoin platform by Visa.
Circle Internet shares dropped more than 5% in midday trade on Thursday after Visa introduced its new stablecoin platform. The Visa Stablecoin Platform (VSP) is designed to help financial institutions and crypto-native firms access stablecoin payments through Visa-managed infrastructure. The platform will initially support Open USD, a rival stablecoin that has pressured Circle’s core USDC business since its launch in late June. The news caused a decline in shares for Circle Internet’s stablecoin partner, Coinbase, which fell approximately 2%. These movements occurred as Bitcoin struggled to maintain a position above the $65,000 mark, trading at roughly $64,400. While retail sentiment for Circle Internet and Coinbase remains bullish, sentiment for Bitcoin shifted to bearish. Visa shares rose over 1.5% following the news, bolstered by a "Buy" rating from Clear Street analyst Owen Lau. Lau described Visa as a high-quality compounder and a "toll-taker" on the transition from cash to digital payments. While Circle Internet shares have fallen over 20% this year, Visa shares have risen over 3%.