Circle CEO Jeremy Allaire has a bold outlook for stablecoins, predicting that they could power the future of intra and inter-border transactions.
Allaire made these claims in a recent interview on CNBC’s Money Movers. He highlighted the growing adoption of stablecoins and how Circle positions itself as a pioneer in offering transactional services to retail and institutional users.
Stablecoins: A Major Upgrade to The Financial System
Allaire suggested that stablecoins and digital assets have improved the global financial system. Beyond retail users, institutions are also turning to these currencies for their daily transactions, leveraging their better proficiency than existing rails.
Stablecoin’s instant transactional ability and low cost are at the forefront of this simplified payment system. Notably, Allaire stressed that households, businesses, and nations are using this means, which he branded as the “future of global money movement.”
Institutions Demonstrate Traction For Stablecoins
Furthermore, this concept is resonating among prominent financial institutions as they seek ways to leverage the stablecoin transactional rail. The growing buzz around the industry was showcased in Circle’s recent initial public offering.
For context, Circle upsized its valuation to $7.2 billion following increased demand during its IPO, raising $1.1 billion from the event at a $31 per share sale. Notably, its stock launched on the NYSE in June at around $69 per share and has since skyrocketed over 500%.
Its post-IPO success demonstrated a massive investor demand for products offering exposure to the stablecoin market. Meanwhile, the lure for such products could increase further amid stablecoin regulatory breakthroughs in the US Senate and House.
Moreover, US Treasury Secretary Scott Bessent projected that the dollar-pegged stablecoin market would reach $2 trillion in the next few years, with brokerage firm Bernstein expecting a global valuation of $4 trillion by 2035.
In the meantime, Circle’s USDC has a market capitalization of $62.7 billion, accounting for 24% of the total $261 billion stablecoin market. Tether’s USDT dominates the sector with a market cap of $160 billion.