Why Circle Internet Group Stock Tumbled Today
Key Points
This would be a serious competitor to Circle's USDC.
That said, USDC will be hard to unseat, as it's a go-to stablecoin for many.
- 10 stocks we like better than Circle Internet Group ›
Circle Internet Group (NYSE: CRCL) wasn't any investor's idea of a good stock buy on Hump Day. Market players aggressively sold out of the stablecoin developer's shares, on the back of a report that several major financial companies are teaming up to develop a competing cryptocurrency. Circle's stock price fell by nearly 11% across that trading session.
New stablecoin coming?
Before market open, crypto news and analysis site CoinDesk reported that Visa, Mastercard, and Stripe are on the brink of rolling out a new stablecoin platform. Citing three unnamed individuals "familiar with the plans," the site said a fourth company, crypto exchange operator Coinbase Global, is considering joining.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
All four companies have, to different extents, developed their own stablecoin capabilities. In fact, Coinbase and Circle co-founded the Centre Consortium as a governance body for Circle's USDC. This lasted until 2023, when the two companies agreed to a two-tier revenue split under which they share the coin's reserve interest income.
CoinDesk said that Visa, Stripe, and Coinbase refused to comment on its story. It had not received a response from Mastercard at the time of publication.
It's hard to compete with an incumbent
The CoinDesk story did not provide any details of this apparent upcoming stablecoin. However, if the article is accurate, such a product is sure to be large-scale and, therefore, competitive even with the most popular stablecoins like USDC or the No. 1 in that category, Tether. Yet I wouldn't sell out of Circle solely on this report, especially without knowing at least a few key details about the new coin, given the prominence and success of USDC so far.
Should you buy stock in Circle Internet Group right now?
Before you buy stock in Circle Internet Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Circle Internet Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $449,393!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,366,006!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 3, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.
Recommended Articles
