Stablecoins, as a successful innovation in the crypto industry, have bridged the gap between traditional finance and crypto assets, becoming an important tool for daily economic activities such as payments and remittances, thanks to their stable value and instant settlement capabilities. Especially in countries with underdeveloped banking systems and high inflation, such as Argentina and Nigeria, the adoption of stablecoins has been expanding.
Stablecoins grow to 10 trillion in 10 years
With the growing demand for stablecoins, many industry insiders are optimistic about their prospects, and even traditional payment companies have started to venture into the stablecoin business. In an interview with CoinDesk, Circle CEO Jeremy Allaire stated that as digital currencies gain a larger share in the global financial system, the stablecoin market could grow to $5 trillion to $10 trillion in 10 years. Allaire predicted:
As stablecoin technology becomes ubiquitous (similar to previous internet innovations like video streaming and online shopping), stablecoins will account for 5% to 10% of the global $100 trillion money supply over the next decade.
Allaire added that we are in the early stages of stablecoin adoption, but over the next 10 to 20 years, this technology will become an integral part of the global financial system.
Stablecoin regulations expected to be implemented by the end of next year in major countries
Given this outlook, Allaire said that regulating stablecoins will be a global priority, and next year will be crucial. He stated that stablecoin legislation has already gained bipartisan support in the US, and the "Stablecoin Transparency Act" is currently in a very mature stage. He further pointed out:
Not only in the US, but most major financial centers already have either enacted, consulting on, or legislating stablecoin laws. By the end of 2025, many G20 members and other emerging markets will have implemented stablecoin-related regulations.
US election may impact Circle's IPO timeline
It's worth noting that Circle plans to go public by the end of the year. Allaire mentioned in the interview that regardless of who wins the November election, he is committed to taking the company public, but he acknowledged that the election results could impact the company's IPO timeline. Allaire said:
Circle is committed to building highly transparent and compliant financial infrastructure. We believe that becoming a public company will further strengthen this trust and accountability.
Adoption of USDC grows in emerging markets
According to the latest data from defillama, USDC has a market capitalization of $34 billion, making it the second-largest stablecoin after USDT, but the gap between the two exceeds $86 billion, which is generally attributed to their different market strategies. Circle focuses on developed and strictly regulated markets like the US and the EU, while Tether focuses on emerging regions with limited access to the US dollar.
However, Allaire said he has observed a significant increase in USDC usage in emerging markets such as Latin America and Southeast Asia, particularly among fintech companies serving local businesses and households. Allaire provided the following examples:
- Many local foreign exchange brokers focused on cross-border payments and currency exchange are using USDC to settle trade between small and medium-sized enterprises;
- USDC facilitated an energy order worth hundreds of millions of dollars between a Middle Eastern supplier and an African buyer;
- Payment giant Stripe re-entered the crypto payment space in October and named USDC as its preferred payment method, opening up payment options for users in over 150 countries through blockchains like Ethereum, Solana, Polygon, and Base.
Further reading: The Biggest Acquisition in Crypto History! Payment Giant Stripe Splashes $1.1 Billion to Acquire Stablecoin Platform Bridge
On the first day of Stripe's stablecoin payment service launch, their product manager Jennifer Lee shared that users from over 70 countries have already chosen to pay with USDC. She further stated:
New companies are starting to use USDC every week, and they can freely build and use Circle's products without even signing a contract with us.
What we have created is an open, public infrastructure that supports digital dollars on the internet.
As the adoption of stablecoins continues to expand and global stablecoin regulations are gradually implemented, Allaire's prediction about the future scale of stablecoins does not seem unreachable.
