He argues that banks are adopting stablecoins in production rather than as rivals, positioning USDC as neutral infrastructure for the broader financial system.
Circle CEO Allaire described a 40% compound annual growth rate for stablecoins as a “reasonable baseline.”
He noted that banks have moved from pilots to full-scale production implementations, signaling institutional adoption.
Allaire said Circle does not view banks or payment firms as competitors in the stablecoin ecosystem, instead seeing itself as neutral infrastructure akin to foundational internet protocols.
This positioning presents USDC as a utility layer that banks, payment processors, and fintech companies can leverage without competing directly with Circle for end customers.
Allaire argued that stablecoins represent a transformative upgrade to the financial system’s plumbing rather than a replacement for existing institutions, emphasizing that banks bring customer relationships and regulatory expertise that complement Circle’s technology.
He added that Circle’s 40% growth projection reflects momentum and the advantages of stablecoins over legacy payment rails, underpinned by demand for instant settlement, 24/7 availability, and programmable money features.
The market for stablecoins now exceeds $300 billion, with use cases spanning cross-border payments, decentralized finance, and corporate treasury management.
His bullish forecast suggests regulatory clarity and institutional adoption will continue to expand the stablecoin ecosystem through 2026 and beyond.
Circle CEO Jeremy Allaire describes a 40% CAGR for stablecoins as a reasonable baseline.
He notes banks have progressed from pilots to full-scale production, signaling institutional adoption.
Allaire stresses that Circle does not view banks or payment firms as competitors, instead seeing USDC as neutral infrastructure for the broader financial system.
The growth projection reflects momentum and the structural advantages of stablecoins over legacy payment rails.
The stablecoin market now exceeds $300 billion, with use cases spanning cross-border payments, decentralized finance, and corporate treasury management.
Allaire argues that stablecoins upgrade the financial system’s plumbing rather than replacing existing institutions, noting that banks bring customer relationships and regulatory expertise that complement Circle’s technology.
Allaire’s bullish forecast suggests regulatory clarity and institutional adoption will continue expanding the stablecoin ecosystem through 2026 and beyond, underpinned by instant settlement, 24/7 availability, and programmable money features.
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