Circle CEO Jeremy Allaire noted that countries outside the United States account for about 70% of USD Coin (USDC) adoption.
Addressing his X(Twitter) followers, Allaire emphasized global USDC adoption beyond the United States, countering the perception of limited U.S. usage. He highlighted advancements in Asia, Latin America (LATAM), and Africa.
Interestingly, Paolo Ardoino, Tether’s chief technology officer, echoed the same sentiment— a non-U.S focused approach, while portraying USDT as a secure instrument for emerging markets.
Meanwhile, Allaire’s comments coincided with PayPal’s announcement about the launch of its USD-pegged stablecoin, PayPal USD (PYUSD). According to him,
“It’s incredibly exciting to see such a significant internet and payments company entering the stablecoin space. This is what happens when we start to get regulatory clarity.”
Allaire’s comments came following a decline in USDC supply since the beginning of 2023. The decrease in demand and the increase in redemptions resulted in a shrinking stablecoin market share of 21%, with a total circulation of $26.1 billion.
Addressing USDC liquidity concerns, CEO Allaire affirmed that redemptions exceeded issuances. He noted, “Over the past month, we’ve issued $5B USDC, and have redeemed $6.6B USDC.” Furthermore, he emphasized Circle’s global banking and liquidity network expansion and collaboration with exceptional banks worldwide.
In a transparency report released on August 3rd, Circle disclosed that the Circle Reserve Fund holds 93% of its portfolio in short-dated U.S. Treasury bonds, overnight U.S. Treasury repurchase agreements, and cash. The remaining 7% consists of cash reserves at banks. This report followed Circle’s announcement in June of obtaining a Major Payment Institution license from the Monetary Authority of Singapore.