In an August 8th tweet, Jeremy Allaire, the CEO of Circle, mentioned that approximately 70% of USD Coin (USDC) adoption originates from countries beyond the United States.
Contrary to the perception of being centered in the US, he noted that much of the adoption of USDC comes from international regions: “We estimate that 70% of USDC adoption is non-US, and some of the fastest growing areas are emerging and developing markets.”
“Strong progress is happening across Asia, Latin America, and Africa,” and “Demand for safe, transparent digital dollars is strong,” he said.
Circle’s USDC is the second-largest stablecoin globally in market capitalization, trailing behind Tether (USDT), which boasts a market cap over three times its size. The rivalry between USDC and USDT for the top spot has persisted for years, and this competition intensified with PayPal’s recent launch of its stablecoin, PYUSD.
Allaire’s statements coincide with a reduction in USDC supply since the start of 2023, attributed to declining demand and increased redemptions. He confirmed in a tweet on August 7th that their USD Coin (USDC) has experienced a more significant number of redemptions than issuances over the last month.
Circle issued $5 billion worth of USDC during this period. However, redemptions exceeded issuances by $1.6 billion, resulting in a total of $6.6 billion redeemed.
Consequently, USDC’s market share as a stablecoin has contracted to 21%, with a total circulation of $26.1 billion.
According to data from Coingecko, USDC’s market capitalization has decreased over 50% in the past year, falling from $54 billion on August 8th, 2022, to just over $26 billion on August 8th, 2023.
Global Expansion Strategies of Stablecoin Issuers: USDC and USDT Look Beyond the United States
Despite acknowledging that the presence of USDC in the United States is relatively small, Jeremy Allaire has actively lobbied US lawmakers.
In July, Jeremy Allaire was featured in a two-minute video released by Circle aimed at the Congress to safeguard stablecoins and foster confidence in digital dollars. This followed the reintroduction of bipartisan legislation specific to digital assets in Congress on July 12th, initially proposed in June 2022.
In the video, Allaire emphasized that the dominance of the US dollar is being challenged, particularly in the face of increasing competition from foreign digital currencies.
He pointed out the potential shift towards global commerce in digital dollars, euros, or yuan. Allaire has previously suggested that China could use stablecoins to promote the adoption of the yuan.
Allaire underscored the need for a decision, asserting that the US must choose whether to maintain the dollar’s prominence in online currency or allow other nations to take the lead.
He further explained that Circle is expanding its global banking and liquidity network by collaborating with high-quality banks in major regions worldwide.
In line with a similar international approach, Paolo Ardoino, the Chief Technology Officer of Tether, a competitor in the stablecoin space, emphasized his company’s focus beyond the United States.
In February, Ardoino noted that USDT, Tether’s stablecoin, can be regarded as a secure tool beneficial for emerging markets and developing nations.