According to Circle’s Jeremy Allaire, most USDC adoption is not based in the United States
Circle is focusing on expanding into new foreign areas as demand grows.
Circle, a US-based firm, is the issuer of the USDC stablecoin, 70% of which is used outside of the US. Circle CEO Jeremy Allaire predicts that some of the fastest-growing regions are new and developing economies outside of the nation that has been suffering serious regulatory uncertainties.
For example, Allaire said on X (formerly Twitter) that he has seen “strong progress” in Asia, LATAM, and Africa, where there is a need for “safe, transparent digital dollars.”
Circle isn’t the only firm that has shown it’s not too dependent on the American market. Concerns about USDC’s liquidity have reemerged as redemptions have outpaced issuance. The CEO of Circle has also commented on the matter, confirming the redemption of $6.6 billion and the issuance of $5 billion in USDC.
Allaire said that Circle, the stablecoin issuer, was working with numerous prominent financial institutions in strategically important locations throughout the world.
Since the beginning of the year, USDC has fallen by more than 43%. Despite a temporary drop below $26 billion, the stablecoin has maintained a market value above that level for the previous several weeks. Coinbase CEO Brian Armstrong recently announced that Binance sold a sizable portion of the token.
During Coinbase’s earnings call for the second quarter, the executive made a surprise remark, saying, “Some of Binance’s holdings in USDC have been assigned to another stablecoin. Based on the information we have accumulated over the last several months, I am confident in saying that the USDC market cap has increased overall. That’s a crucial piece of information.”
After the New York Department of Financial Services (NYDFS) ordered the dollar-pegged BUSD stablecoin to cease issuing, the market began searching for alternatives. Binance is now focusing on TrueUSD (TUSD) as a stablecoin alternative. However, on June 10th, the TUSD lost its link to the USD and was no longer issued.
In contrast, Tether’s Ardoino saw the increase of FDUSD and noted that USDT was under pressure and that its main rival, USDC, had huge redemptions rather than profiting from the scenario.
This week’s introduction of PYUSD by global payments giant PayPal further verifies the shift in the stablecoin ecosystem.
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