Circle CEO Jeremy Allaire said stablecoins could capture a 5% to 10% share of the global money supply over the next 10 years.
Allaire said next year will be a pivotal year for stablecoin regulation, predicting that many G20 countries and emerging markets will enact legislation by the end of 2025.
Jeremy Allaire, CEO of Circle, which develops the USDC and EURC stablecoins, said the stablecoin market will be He said it has the potential to grow into a $5 trillion to $10 trillion market. coin desk.
Allaire predicts that stablecoins (a type of virtual currency whose value is pegged to traditional currencies like the US dollar or euro) will add $100 trillion to the global money supply over the next decade as the technology becomes more widespread. He said that he envisions gaining a 5% to 10% share of the market. Previous internet-based innovations such as video streaming and online shopping.
“We are in the very early stages of stablecoin adoption, but over the next 10 to 20 years this technology will become part of the global financial system,” he said.
Stablecoins are one of the most popular innovations in cryptocurrencies, bridging government-issued fiat currencies on traditional financial rails and blockchain-based digital assets to facilitate transactions and transactions. All stablecoins combined have a market capitalization of approximately $170 billion. Blockchain’s non-volatility, combined with its speed and near-instantaneous payments, makes payments easier, especially in developing countries such as Argentina and Nigeria, where banking systems are not very robust and the value of local currencies is rapidly depreciating. Blockchain is increasingly being used for everyday economic activities such as remittances.
Circle’s USDC token is the second-largest stablecoin on the market and has grown to $35 billion since its launch in collaboration with crypto exchange giant Coinbase six years ago. Its larger rival, Tether, has a market capitalization of $120 billion. Market players say Tether’s rapid growth is due to Circle’s focus on developed and highly regulated markets such as the United States and the European Union, while Tether’s focus on emerging regions with limited access to dollars. This is partly due to the company’s focus on
But Allaire said he expects USDC usage to increase significantly in emerging markets such as Latin America and Southeast Asia, especially among fintech companies serving local businesses and households.
Allaire said one “great example” is the growing number of local foreign currency brokers specializing in cross-border payments and currency conversion, leveraging USDC to settle transactions between small and medium-sized businesses. Ta. Another example is an anecdote one of Circle’s partners told Allaire about “hundreds of millions of dollars in energy orders between Middle Eastern suppliers and African buyers” facilitated by USDC.
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Another example of the growing adoption of USDC as a payment method is the reintroduction of USDC transactions for merchants in October this year by US-based fintech company Stripe. According to a post on X by Jennifer Lee, Stripe Product Manager, users from 70 countries selected the USDC payment option in the first 24 hours.
“There are new[companies]coming out every week that use USDC to build and use Circle’s products, and they don’t even have to contract with us,” he said. “The beauty of what we’ve built is that it’s an open public infrastructure for digital dollars on the internet.”
Circle announced plans to go public earlier this year, but the upcoming US elections in November and uncertainty over the incoming administration’s views on cryptocurrencies are weighing on many US-based digital asset companies. are.
Allaire said he remains committed to taking the company public regardless of who wins the November election, but noted that the outcome could potentially impact the timeline should it materialize. I admitted it.
“Circle is committed to building a transparent and compliant financial infrastructure, and we believe becoming a publicly traded company will strengthen that trust and accountability.”
He emphasized that the Stablecoin Act has bipartisan support in the United States and that the Payment Stablecoin Act is at a very advanced stage.
Not just in the U.S. Stablecoin regulation is a top priority globally, and next year will be critical, Allaire said.
“Most major financial hubs already have stablecoin laws in place, either on their books or in consultation or before the legislature,” he said. “By the end of 2025, a huge number of G20 countries and many emerging markets will have adopted stablecoin regulations.”
