Circle CEO says 70% of USDC adoption comes primarily from non-US markets.
Circle CEO Jeremy Allaire confirmed that USD Coin ( USDC ) redemptions have exceeded issuance over the past month, according to an Aug. 7 tweet.
Allaire said Circle issued $5 billion worth of USDC in the past month, with redemptions exceeding issuance by $1.6 billion, for a total of $6.6 billion. He said the high redemptions are a testament to the company’s liquidity despite recent concerns about its books and reserves.
Allaire explained that the global banking and liquidity network of stablecoin issuers is expanding. He added:
“We are working with high-quality banks in major regions around the world to bring local settlement rails and globally distributed minting/burning to USDC.”
USDC’s reserves and liquidity have faced greater scrutiny since it was revealed in March that it had been in contact with the collapsed Silicon Valley Bank (SVB). According to data, the market dominance of stablecoins has dropped to 21% and the supply has dropped to around $26 billion.
70% of USDC adoption occurs abroad
Despite the declining market share, Allaire noted that 70% of USDC adoption comes from abroad, dispelling the suggestion that the company is “all about America.”
Allaire said stablecoin adoption is coming primarily from emerging and developing markets in Asia, Latin America and Africa.
Circle has not yet responded to requests for additional comment on its adoption in these markets.
Welcome PayPal’s entry into the stablecoin space
The Circle CEO also welcomed PayPal’s entry into stablecoins as a demonstration of what might happen if more regulation were introduced. He said:
“That will happen when we begin to gain regulatory clarity, through the Payments Stablecoin Act, which could open a free and competitive market for issuers of dollar stablecoins with strong regulation, allowing the United States to compete with a digital dollar that is consistently safe, transparent, liquid, and regulated to Federal Reserve standards.”
Allaire further noted that the introduction of stablecoin laws in different jurisdictions will allow customers to know who they are dealing with, adding that companies that can withstand the scrutiny of central banks and prudential regulators will thrive.
