Recent findings suggest the reach of the USD Coin (USDC) is more international than previously anticipated.
Jeremy Allaire, the Chief Executive Officer (CEO) of Circle, recently shared startling insights via Twitter.
According to his tweet published on August 8th, around 70% of USDC's adoption comes from nations outside the United States. In its tweet, Allarie highlighted that “despite the hype that we're all about the US <...> we estimate that 70% of USDC adoption is non-US.”
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Allaire emphasized that the most aggressive growth rates were prevalent in emerging and developing markets, especially regions spanning Asia, Latin America (LATAM), and Africa.
The Chief Technical Officer of stablecoin USDT issuer Tether, Paolo Ardoino, has previously agreed with this perspective that US dollar-pegged stablecoins are more attractive to crypto investors overseas. Ardoino said that USDT can be "considered a safe tool for emerging markets and developing countries."
It is worth noting that recently PayPal announced the launch of a USD-pegged stablecoin, dubbed PayPal USD (PYUSD). Responding to this, Allaire extended his commendations to both PayPal and Paxos, emphasizing:
It's incredibly exciting to see such a significant internet and payments company entering the stablecoin space. This is what happens when we start to get regulatory clarity.
However, while some companies are making moves in their development, Circle is facing some challenges. Since the beginning of 2023, USDC's supply has seen a dip, attributed to decreased demand and rising redemptions. Consequently, its grip on the stablecoin market has fallen to a mere 21%, translating to a net circulation of $26.1 billion.
A report from early August disclosed that Circle's reserve fund predominantly consists of short-dated US Treasuries and overnight repurchase agreements. Only a marginal 7% is held as bank cash reserves.
Circle has recently received the Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).
The surging international adoption of USDC underscores its universal appeal and potential, marking a notable shift in the global cryptocurrency landscape.
