Circle plans to expand its USDC stablecoin into approximately 40 emerging and developing countries, CEO Jeremy Allaire said in remarks to Reuters at the IMF and World Bank meetings in Bangkok. The expansion reflects what Allaire characterized as blockchain technology moving from an early adoption phase into mainstream scaling.
Allaire pointed to growing organic demand for stablecoins in Southeast Asia, Latin America, Africa, and the Middle East, driven by individuals and businesses seeking to participate in an internet-based economy. Stablecoins are cryptocurrencies pegged to traditional assets, typically the U.S. dollar.
USDC currently holds about 25% of the stablecoin market, compared with approximately 60% for Tether's USDT. In the second quarter, USDC's circulation rose 19% year over year to $73.3 billion.
Circle has positioned itself to pursue the expansion through recent strategic moves, including a $400 million acquisition of payments firm Tazapay and a $100 million strategic investment from Binance. The company also obtained a federal banking charter in July and has pursued a New York trust charter.
Regulatory developments are providing additional momentum. The GENIUS Act, a U.S. stablecoin law, is scheduled to take effect in January. Allaire described the legislation as a watershed moment that would provide the world with legal digital dollars.
Allaire noted that traditional banks are developing their own stablecoins and framed this as healthy competition. He suggested that the financial sector is undergoing a shift in which they are no longer in charge, and the innovators are having their day.
Circle's Arc network has been adopted by BlackRock, Visa, and Standard Chartered. Allaire also credited artificial intelligence agents making machine-to-machine payments with increasing USDC usage, as Circle has focused on positioning USDC as the currency for AI agents.
Allaire cautioned that AI introduces security risks for financial infrastructure, stating that concerns about these risks warrant serious attention.
