CEO Circle: Stablecoins Set to Capture 10% of Global Currency

Circle's CEO Jeremy Allaire has outlined four reasons why he's more confident than ever about cryptocurrencies and stablecoins.

CEO Circle: Stablecoins Set to Capture 10% of Global Currency. Photo: Business Insider

According to the latest insights from Circle's CEO Jeremy Allaire, stablecoins could account for up to 10% of the "global economic money supply" within the next decade or more.

This bold assertion isn't without basis, as Allaire has identified several factors that could propel stablecoins in the coming decade. Speaking recently on X on June 19:

"Most of the world's largest payment companies are actively embracing this technology and exploring its applications as the benefits of public blockchains and stablecoins become increasingly clear."

Allaire noted the potential market size in the "trillions," and the promise of digital money on blockchains fulfilling banking services for the unbanked, reducing remittance costs, and boosting international trade.

He highlighted that stablecoins are gaining acceptance and will capture a "substantial and growing" share of the $100 trillion global cryptocurrency market by the end of 2025.

"What will it look like when 10% of the global money supply is stablecoin and credit intermediation shifts from fractional reserve lending to on-chain credit markets? This could be achievable in the next 10+ years," projected Allaire.

Referencing data from the World Population Review, the $162 billion stablecoin market currently represents 0.2% of the $80 trillion currency market. Savings, cash, and payment accounts hold $26.4 trillion, $25 trillion, and $23.6 trillion, respectively, with the remaining $5 trillion from money printing institutions.

To realize Allaire's 10% prediction by 2034, the stablecoin market would need an annual compounded growth rate of at least 47.7%, ignoring the growth of traditional currency markets.

Allaire's optimism extends beyond the stablecoin market. He envisions cryptocurrency adoption reaching "billions of users" across "millions of applications" in the next decade, with numerous commercial and financial transactions conducted via smart contracts on blockchain infrastructure.

He even speculates that some on-chain organizations may outperform multinational corporations during this period, though he did not specify which sectors.

Circle's USDC currently holds a market cap of $32.8 billion, ranking as the second-largest stablecoin after Tether's USDT.

Source: CoinMarketCap

In summary, Circle has had few activities this year apart from testing the conversion of BlackRock's RWA fund into USDC and supporting Programmable Wallets development tools on Solana.

Meanwhile, competitor Tether has been quite active recently, investing in Bitcoin mining, payment processing, artificial intelligence (AI) through cloud computing, and planning over $1 billion in investments for the upcoming year. Just two days ago, Tether also launched a gold-backed token in Switzerland.