Circle stock falls 17.5% after Russell removals and Open USD launch
Circle shares fell sharply after CRCL was removed from several Russell Growth indexes and a new stablecoin rival entered the market.
- Circle left multiple Russell Growth indexes, raising questions about passive ownership and near-term CRCL liquidity.
- CRCL fell 17.5% as Open USD introduced fresh competition for USDC’s stablecoin model this week.
- Allaire defended USDC’s market position, while Tether’s Ardoino welcomed another stablecoin rival entering the field.
Circle Internet Group was removed from multiple Russell Growth benchmarks during the latest annual reconstitution. The changes included the Russell 1000 Growth Index, Russell 3000 Growth Index and Russell Midcap Growth Index.
The report said index-linked funds and institutional mandates that track these benchmarks may adjust their exposure to CRCL. Such changes can affect passive ownership and trading activity around rebalancing dates, especially for stocks with recent market volatility.
CRCL price falls after rebalancing
CRCL traded at $62.63, down about 17.5%, after touching an intraday low of $62.00. The stock opened at $72.68 before extending losses during the session.
Source: Google finance
The latest fall followed a wider 30-day decline. CRCL had dropped 40% over the past month, a move it said may reflect selling pressure tied to index removal.
The Russell changes came during a broader reconstitution of U.S. equity benchmarks. The June 2026 process included changes across growth, value and size-based indexes as market leadership shifted.
Open USD adds new USDC rival
Circle also faced fresh pressure after the launch of Open Standard, a new stablecoin network backed by more than 140 businesses. Visa, Mastercard and Coinbase were among the companies tied to the initiative, which plans to issue a U.S. dollar-pegged stablecoin called Open USD.
“Existing stablecoins have great strengths, but to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests,” Open Standard founding CEO Zach Abrams said.
Open USD will offer free minting and redemption while sharing reserve earnings with ecosystem participants after a management fee. That model differs from Circle’s USDC business, where reserve income remains central to the company’s revenue base.
Circle and Tether chiefs respond
“USDC remains the most trusted, widely adopted, institutional-ready stablecoin in the world,” Circle CEO Jeremy Allaire said in a post on X. He said Circle would keep investing across banks, payment companies, capital markets firms and enterprise use cases.
“Welcome OUSD. Player 2 has entered the game,” Tether CEO Paolo Ardoino said in a post on X. His comment came as Open USD added another large-name rival to a market led by USDT and USDC.
Previously, it was reported that Circle’s NYSE listing under CRCL had turned USDC into one of Wall Street’s most closely watched stablecoin plays. The stock’s latest move shows how index changes and stablecoin competition are now both shaping investor views on Circle.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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