Two stablecoin giants, Tether and Circle, are setting their sights on territories beyond Uncle Sam’s reach, noting the ever-increasing adoption in these areas.
Jeremy Allaire, the man at the helm of Circle, estimates a staggering 70% of USD Coin (USDC) is getting picked up by folks living outside the United States.
On the eighth day of August, Allaire took to Twitter, a platform that boasts 131,300 of his followers, to share that a hefty chunk of USDC fans actually live beyond the U.S. borders. In his words, “Despite the hype that we’re all about the US, we reckon that 70% of USDC is being adopted by non-U.S. folks, with the fastest growth spurt being seen in the rising and developing markets.” He further revealed that Asia, Latin America (LATAM), and Africa are showing some promising progress.
Paolo Ardoino, the tech whiz at Tether, another stablecoin giant, seems to be on the same page as Allaire, vocalizing a similar focus on international markets. Back in February, he asserted that USDT could be seen as a “safe haven for those in emerging markets and developing countries.”
In the quest to uncover more about Circle’s international escapades, Cointelegraph sent out feelers, but at the time of printing, Circle remained mum.
Allaire’s revelations came hot on the heels of PayPal’s announcement that it’s bringing its own USD-pegged stablecoin, PayPal USD (PYUSD), into the limelight. Allaire was all smiles for the company and Paxos, sharing his excitement about a significant online payment player entering the stablecoin arena, “This is what happens when we start to get regulatory clarity.”
But it’s not all sunshine and roses for Circle. The USDC supply has been on a downward slide since the dawn of 2023, due to waning demand and a rise in redemptions. This has led to a reduction in its stablecoin market presence, dropping to a mere 21% with a total circulation of $26.1 billion.
Addressing concerns about USDC liquidity on the same day, Allaire confirmed that redemptions were outstripping issuance, with the statement, “Over the past month, we’ve released $5B USDC into the wild, and pulled back $6.6B USDC.”
Allaire remains hopeful, stating that Circle’s global banking and liquidity network is on the upswing and that they are in cahoots with “first-class and top-notch banks in key regions across the globe.”
In a recent transparency report released on Aug. 3, Circle revealed that its reserve fund, Circle Reserve, is holding 93% of its portfolio in short-term U.S. Treasurys, overnight U.S. Treasury repurchase agreements, and cold hard cash. The remaining 7% is resting comfortably in bank cash reserves, according to Circle.
Finally, the cherry on top for Circle came in early June, when it bagged a Major Payment Institution license from the Monetary Authority of Singapore.
