Circle defends USDC economics as stablecoin rivals court its partners with bigger cut

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A BIS working paper found a 1 basis point rise in U.S. bank deposit rates predicted slower stablecoin growth, cutting ten-week growth from 15% to 12%.

Stablecoin issuer Circle is seeking to enter about 40 developing markets, according to the company’s CEO and ​chairman, Jeremy Allaire. “We’re kind of going through an inflection point... a transition right now, ‌and that transition is essentially moving from the early adopter phase of blockchain technology into the mainstream scaling phase,” Allaire told Reuters, speaking Friday on the sidelines of the IMF and World Bank meetings ​in Bangkok. Markets in Southeast Asia, Latin America, Africa and the Middle East are experiencing increasing demand for stablecoins as businesses and individuals seek to enter the internet-based economic system, Allaire reportedly said. Cointelegraph reported on Aug. 24 that analysts at Bernstein were bullish on Circle (CRCL), foreseeing a new growth cycle for its USDC stablecoin may provide a significant boost for the company over the next 12 months. Bernstein said the next phase of stablecoin growth could be driven by several factors, including renewed momentum in crypto markets, greater US regulatory clarity, tokenized capital markets and growing adoption of stablecoins for payments.

Stablecoin-funded remittances continue to offer substantial cost savings over traditional money transfers, particularly in emerging markets, reinforcing one of the leading use cases for digital dollars as payment activity grows. According to a new third-quarter report from Borderless.xyz, a stablecoin payments network, sending a $200 remittance through stablecoin-funded payment rails costs a median of 1%, or $2, compared with 6.36%, or $12.72, for traditional remittances, based on World Bank data. The difference makes stablecoin-funded remittances roughly 84% cheaper, although the comparison uses Borderless’s third-quarter 2026 pricing and World Bank figures from the same period in 2025. The savings are also substantial across emerging markets. In Sub-Saharan Africa, stablecoin-funded remittances cost 2.9%, compared with 8.46% for traditional transfers. In Latin America, the costs are 1.25% and 5.64%, respectively. Business payments made through stablecoins are also significantly cheaper, according to the report.

Circle CEO Jeremy Allaire told Reuters he sees regulatory clarity and AI agent transactions as key catalysts driving stablecoin adoption into mainstream finance.

Bo Hines, previously a crypto adviser to US President Donald Trump who later joined stablecoin issuer Tether, reportedly kept a stake in a company that profited from the passage of a stablecoin bill when he was still at the White House. According to a Wednesday report from The Wall Street Journal, Hines had a one-third stake in the investment company he co-founded, Nxum, while pushing US lawmakers to pass the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS, Act. The legislation reportedly came amid Nxum receiving $6.3 million as part of a deal with stablecoin issuer Tether, behind the USDt (USDT) token, with the first payment going through while Hines was still serving in government. The Wall Street Journal reported that Hines kept in contact with his partners at Nxum, updating them on progress with the GENIUS Act through the Signal app while serving as Trump’s crypto adviser.