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Circle CEO: 70% of USDC usage comes from outside the US
Author: MARTIN YOUNG, COINTELEGRAPH; Compiler: Songxue, Jinse Finance
Circle CEO Jeremy Allaire estimates that as much as 70% of dollar stablecoin usage comes from countries outside the United States.
On August 8, Allaire tweeted to his 131,300 followers on X (Twitter) that non-US citizens use USDC at a high rate. “While we’re all hyping the US,” he added:** “We estimate 70% of USDC usage is non-US, and some of the fastest growing regions are emerging and developing markets.”**
He added that Asia, Latin America and Africa are making great progress.
Paolo Ardoino, CTO of stablecoin rival Tether, echoed similar sentiments. In February, he stated that USDT could “be considered as a security tool for emerging markets and developing countries.”
Allaire’s comments came as PayPal announced it would be launching its own dollar-pegged stablecoin, PayPal USD (PYUSD), congratulating the company and Paxos, adding:
“It’s really exciting to see such a significant internet and payments company enter the stablecoin space. That’s what’s going to happen when we start to have regulatory clarity.”
Since the beginning of 2023, USDC supply has also declined due to reduced demand and increased redemptions. As a result, its stablecoin market share has shrunk to just 21%, with a total circulation of $26.1 billion.
On August 8, Allaire also commented on concerns about USDC liquidity, confirming that the redemption rate exceeded the issuance rate, and said: "In the past month, we issued USD 5 billion USDC and redeemed USD 6.6 billion USDC USDC."
Circle’s global banking and liquidity network is expanding, Allaire added, and the firm is working with “premium and high-quality banks in key regions of the world.”
Its Circle Reserve Fund holds 93% of its portfolio of short-term Treasuries, overnight Treasuries repurchase agreements and cash, the firm said in a transparency report published Aug. 3. According to Circle, the remaining 7% is the bank's cash reserves.
In early June, Circle announced it had been awarded a Major Payments Institution (MPI) license by the Monetary Authority of Singapore (MAS).