Circle CEO Jeremy Allaire on stablecoins: A CAGR of 40% is a pretty reasonable baseline

Summary

Jeremy Allaire, Circle CEO, discusses the accelerating adoption of stablecoins and the regulatory environment at Davos. He highlights USDC's growth, a reasonable 40% CAGR baseline, and Circle's neutral network-effect positioning as banks and payment companies integrate stablecoins. He also sees the market-structure bill as a positive catalyst for broader digital-token use in capital markets, while acknowledging long-term uncertainty in payment business models.

• Stablecoin adoption is expanding with regulatory clarity and bank interest.
• Circle reports USDC circulation growth and a 40% CAGR baseline.
• Visa and Mastercard are partners using USDC, though the investment read-through is mainly to Circle.
• Banks launching stablecoins are framed as not negative due to network effects and neutral infrastructure.
• The market-structure bill could broaden digital-token use in capital markets.
• Allaire sees long-term payment economics becoming more uncertain as money-movement costs fall.