Global Dominance: Circle CEO Reveals 70% of USDC Adoption Originates Beyond US Borders

In an announcement made on August 8 to his followers on Twitter, which numbers at 131,300, Allaire emphasized that this significant level of non-U.S. adoption counters the prevailing notion that USDC’s influence is primarily limited to the U.S. He stated:

“We estimate that 70% of USDC adoption is non-US, and some of the fastest growing areas are emerging and developing markets.”

Allaire underscored that notable progress was being made across key regions such as Asia, Latin America (LATAM), and Africa.

This sentiment of global emphasis extends to other stablecoin providers as well. Paolo Ardoino, the Chief Technology Officer of Tether, a rival issuer of stablecoins, echoed a similar international focus for their firm’s stablecoin. In February, he noted that USDT could be viewed as a “secure tool for emerging markets and developing countries.”

While CryptoGrafos reached out to Circle for more details on their non-U.S. expansion, no response had been received at the time of publishing.

Allaire’s statement coincided with an announcement from PayPal about the launch of its own USD-pegged stablecoin, PayPal USD (PYUSD). Allaire congratulated both PayPal and Paxos on this development, highlighting that such advancements become possible when regulatory clarity is achieved.

This disclosure comes against the backdrop of a decline in the supply of USDC since the beginning of 2023, driven by decreased demand and heightened redemptions. Consequently, the stablecoin’s market share has contracted to a mere 21%, with a total circulation value of $26.1 billion.

On August 8, Allaire also addressed concerns regarding USDC liquidity, confirming that redemptions were outpacing issuance. He stated, “Over the past month, we’ve issued $5 billion USDC, and have redeemed $6.6 billion USDC.”

Allaire additionally revealed that Circle’s global banking and liquidity network was expanding, with collaborations underway with top-tier banks in major regions worldwide.

In a transparency report unveiled on August 3, Circle detailed that its Circle Reserve Fund primarily consists of a 93% portfolio comprising short-dated U.S. Treasuries, overnight U.S. Treasury repurchase agreements, and cash. The remaining 7% is held as cash reserves in banks, as per Circle’s report.

In early June, Circle announced securing a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), further reinforcing their global expansion strategy.

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