Circle CEO: Stablecoins may account for 10% of the global money supply within ten years

Author: Krisztian Sandor, CoinDesk; Compiler: Baishui, Golden Finance

• Circle CEO Jeremy Allaire said that stablecoins could account for 5%-10% of the global money supply in the next decade.

• Allaire said that next year will be a key year for stablecoin regulation, and many countries in the G20 group and emerging markets are expected to have laws in place by the end of 2025.

The company behind the USDC and EURC stablecoinsCircle CEO Jeremy Allaire said in an interview that the stablecoin market could grow to a $5 trillion to $10 trillion market in 10 years as digital currencies win a larger share of the global financial system.

Allaire said he expects stablecoins - cryptocurrencies whose value is pegged to a traditional currency such as the dollar or euro - to account for 5% to 10% of the world's $100 trillion money supply in the next decade as the technology spreads like previous internet-based innovations such as video streaming and online shopping.

"We are in the early stages of stablecoin adoption, but in the next 10, 20 years, this technology will become part of the global financial system," he said.

Stablecoins are one of the most popular innovations in the crypto space, connecting government-issued fiat currencies on traditional financial rails with blockchain-based digital assets to facilitate transactions. Collectively, all stablecoins have a market value of about $170 billion. Due to their non-volatility, coupled with blockchain's speed and near-instant settlement, they are increasingly used for everyday economic activities such as payments and remittances, especially in developing countries with less robust banking systems and rapidly depreciating local currencies, such as Argentina and Nigeria.

Circle’s USDC token is the second-largest stablecoin on the market, having grown to $35 billion in value since it was launched six years ago in partnership with cryptocurrency exchange giant Coinbase. Its larger rival is Tether’s USDT, which has a market cap of $120 billion. Market observers attribute Tether’s rapid growth in part to its focus on emerging regions with limited access to the U.S. dollar, while Circle focuses on developed and heavily regulated markets such as the U.S. and the European Union.

However, Allaire said he expects USDC’s use to grow significantly in emerging markets such as Latin America and Southeast Asia, particularly among fintech companies that serve local businesses and households.

One of the “cool examples,” Allaire said, is that a growing number of local foreign exchange brokers specializing in cross-border payments and currency conversions are using USDC to settle transactions between small and medium-sized enterprises. Another example is an anecdote from a Circle partner who told Allaire that “a $100 million energy order was signed between a Middle Eastern supplier and an African buyer” that was facilitated by USDC.

Another example of the growing adoption of USDC as a payment instrument is the reintroduction of USDC transactions for merchants by U.S. fintech company Stripe in October this year. Stripe product manager Jennifer Lee posted on X that within the first 24 hours, users from 70 countries chose the USDC payment option.

“There’s a new [company] using USDC every week, and they don’t even need to transact with us” to build and use Circle’s products, he said. “The beauty of what we’ve built is that it’s open public infrastructure for the digital dollar on the internet.”

Global Stablecoin Regulation

Circle laid out plans to go public earlier this year, but the upcoming November U.S. election and uncertainty about the next administration’s view on cryptocurrencies has put pressure on many U.S. digital asset companies.

Allaire said he remains committed to taking the company public regardless of who wins the November election, but acknowledged that the outcome could affect the timeline for that to become a reality.

“Circle is focused on building highly transparent and compliant financial infrastructure, and we believe becoming a public company will strengthen that trust and accountability,” he said.

He stressed that stablecoin legislation has bipartisan support in the United States, with the Payments Stablecoin Act being at a very advanced stage.

It’s not just the United States, Allaire said regulating stablecoins is a global priority and the next year will be critical.

“Most major financial centers already have stablecoin laws that are either on the books, under negotiation or have been introduced to legislatures,” he said. “By the end of 2025, a significant number of G20 countries and many emerging markets will have stablecoin regulation in place.”