Circle Head Claims the Majority of USDC Support Comes from Outside the US
Circle Head Claims the Majority of USDC Support Comes from Outside the US
Jeremy Allaire, the CEO of Circle, recently took to X (formerly Twitter) to share a surprising insight into the adoption of the USD Coin (USDC) stablecoin.
Contrary to the common perception that USDC is primarily used within the United States, Allaire revealed that approximately 70% of USDC's adoption actually stems from international markets, including strong traction in Asia, Latin America, and Africa.
Allaire's disclosure highlights the growing global demand for safe and transparent digital dollars.
He emphasized that despite the initial focus on the US market, emerging and developing regions are rapidly adopting USDC, demonstrating the stablecoin's relevance beyond American borders.
This trend aligns with statements made by Paolo Ardoino, the CTO of Tether, USDC's rival, who earlier expressed the intent to extend the influence of USDT as a secure financial instrument in developing markets outside the US.
In a parallel development, PayPal recently introduced its own US Dollar-backed stablecoin, "PYUSD," which will be exclusively available for customers within the United States. This newcomer is fully backed by USD deposits, short-term Treasuries, and cash equivalents, issued by Paxos Trust Co.
Allaire commented on PayPal's entry into the stablecoin arena, attributing it to the increasing regulatory clarity in the broader finance sector, particularly concerning digital assets.
A report detailed a decline in USDC supply since the beginning of 2023, with its market share slipping to 21% and a circulating value of $26.1 billion. Notably, only $5 billion worth of USDC has been issued in contrast to $6.6 billion redeemed in July.
Meanwhile, a recent comment by Coinbase CEO Brian Armstrong weighed in, suggesting that Binance's move to exchange some of its USDC holdings for another stablecoin has not negatively impacted USDC's market capitalization at this point.
“Binance actually moved some of their funds from USDC into another stablecoin. I think the data we have in the last six or seven weeks, I believe, that the USDC market cap is up net of that. And so that’s an important data point,” Armstrong shared.
The recent development underscores the ongoing dynamics within the stablecoin ecosystem and its broader implications for market participants.
The revelations made by Circle's CEO and the evolving landscape of stablecoins emphasize the intricate interplay of adoption, regulatory conditions, and shifting preferences among digital asset players worldwide.
