ARK Invest CEO Cathie Wood believes the stablecoin market will remain dominated by established players, arguing that strong network effects make it difficult for new issuers to challenge leaders such as Tether’s USDT and Circle’s USDC.
Speaking on ARK Invest’s research, Wood said stablecoins operate as monetary networks that become more valuable as adoption increases. She said trust, collateral usage and integration across financial platforms have helped USDT and USDC secure their leading positions in the market.
In @ARKInvest’s view, stablecoins are monetary networks with effects that compound over time, thanks to trust, collateral utility, and integrations. The network effects of USDT and USDC have been powerful. @LorenzoARK explains convincingly why OUSD is unlikely to displace them. https://t.co/qEUimwpsiK
— Cathie Wood (@CathieDWood) July 9, 2026
Wood referenced research from ARK Invest Director of Digital Assets Lorenzo Valente, who said newer stablecoins are unlikely to displace the current market leaders despite fresh competition.
Why do USDT and USDC remain ahead?
According to ARK Invest’s research, stablecoin adoption creates a network effect that strengthens with every new user, business and financial platform that integrates the asset.
Wood said this has given USDT and USDC a significant advantage, making them the preferred stablecoins for trading, payments and decentralized finance. Their broad acceptance and liquidity continue to reinforce their market positions, creating higher barriers for new entrants seeking market share.
The comments come as the global stablecoin market approaches a valuation of nearly $308 billion, with competition increasing across both crypto-native firms and traditional financial institutions.
READ ALSO: Are Stablecoins Becoming the New ‘Central Business Digital Currencies’?
Can Open USD challenge the market leaders?
Open Standard, a consortium led by Stripe-owned Bridge co-founder Zach Abrams, introduced Open USD (OUSD) late last month as a new institutional-focused stablecoin initiative.
The project is backed by more than 140 companies and aims to reduce the cost of stablecoin adoption by eliminating issuance and redemption fees, sharing most reserve income with participants and operating under an independent governance model.
However, Samsung Electronics, Shinhan Financial Group and several other South Korean companies later said they had not formally agreed to participate in the consortium despite being listed among supporters.
OUSD is expected to launch later this year.
Stablecoin competition continues to grow
The stablecoin sector has expanded rapidly as payment companies and financial institutions increase investments in blockchain-based settlement systems.
New issuers are entering the market through partnerships, acquisitions and infrastructure projects designed to improve digital payments and institutional access.
Despite those efforts, ARK Invest’s research suggests established stablecoins are likely to retain their lead because their large user bases, deep liquidity and broad integration across the crypto ecosystem continue to strengthen their network effects.
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