Key Highlights
- Circle plans to expand into approximately 40 emerging and developing markets, targeting regions including Southeast Asia, Latin America, Africa, and the Middle East.
- CEO Jeremy Allaire said individuals and businesses in these regions are increasingly seeking stablecoins for internet-based financial services.
- USDC circulation rose 19% year over year to $73.3 billion in the second quarter, while Circle held roughly 25% of the global stablecoin market, according to the company.
Circle, the issuer of the USDC stablecoin, is reportedly planning to expand into approximately 40 emerging and developing markets as demand for digital dollars grows across several regions.
According to the Reuters report published on October 16, the expansion targets Southeast Asia, Latin America, Africa, and the Middle East. Circle CEO Jeremy Allaire cited rising demand for stablecoins among individuals and businesses seeking access to internet-based financial systems.
Circle holds roughly 25% of the global stablecoin market, while Tether’s USDT accounts for nearly 60%. The company’s U.S. dollar-backed stablecoin, USDC, recorded a 19% year-over-year increase in circulation to $73.3 billion in the second quarter.
AI payments add to stablecoin use cases and security concerns
Allaire also pointed to increased USDC activity linked to machine-to-machine transactions among AI agents, which conduct small payments for tasks such as web research or real-time data retrieval.
He said the expansion of AI systems introduces heightened security vulnerabilities for financial infrastructure providers, including threats from sophisticated actors and automated agent networks.
The comments highlight an emerging use case for stablecoins beyond conventional payments, although the scale of AI-driven transactions remains unclear from the report.
Regulatory developments supporting stablecoin
Allaire referenced the U.S. Genius Act, which is scheduled to take effect in January 2027, as part of the changing regulatory environment for stablecoins. Moreover, in July, Circle received final approval from the U.S. Office of the Comptroller of the Currency to establish First National Digital Currency Bank, N.A., operating as Circle National Trust.
The comments follow a recent European regulatory step. On October 14, the European Banking Authority classified USDC as the first significant e-money token under the Markets in Crypto-Assets Regulation. Supervisory responsibilities are set to shift from November 12, with oversight shared between the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution.
Circle’s Arc blockchain initiative has also drawn participation from firms including BlackRock, Visa and Standard Chartered. Banking groups in the United States and Europe are developing their own stablecoin and digital asset products. Allaire characterized the activity as evidence of competition in the market, the report further noted.
Circle has not provided a detailed timeline or a list of the approximately 40 markets under consideration. Allaire’s remarks focused on demand patterns and the regulatory and competitive environment surrounding stablecoins.
Circle shares trade little changed after USDC revenue update
Circle shares traded little changed on Friday as the company outlined the economics of its USDC operations on October 16. In a report, the company said revenue reached $1.4 billion in the first half of 2026. Of that amount, $819 million went to distribution partners and transaction costs, while $473 million covered operations and infrastructure. The remaining portion represented approximately 7% of revenue, according to Circle’s breakdown.
According to Yahoo Finance (at 14:18 UTC on October 16), CRCL stood at $87.05, up 0.09% over the prior 24 hours. The stock recovered from an intraday low near $85. Market capitalization was approximately $22.09 billion, with an average volume of about 13.2 million shares.
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