The digital dollar is heading on tour to places where bank branches are scarce. On Friday, Jeremy Allaire, CEO and co-founder of Circle, told Reuters of a push to take USDC into some forty emerging and developing markets, from Southeast Asia to Latin America by way of Africa, reports Journal du Coin. The announcement came on the sidelines of the IMF and World Bank meetings in Bangkok.

Behind that round figure, some sorting is needed: what is already in place on one side, what is still only an intention on the other.

USDC: a statement of intent, not yet a launch

What Circle says: businesses and individuals in Southeast Asia, Latin America and the Middle East are increasingly turning to stablecoins to make payments and move funds. Its chief sees a turning point: “We are kind of going through an inflection point, a transition. It is essentially moving blockchain from the early adopter phase to the mainstream scaling phase.”

What we don’t know: the source gives neither the list of target countries, nor the local partners, nor the licences required market by market, nor the timeline. At this stage, the forty or so markets remain a goal stated by the executive, not an observed rollout.

The available figures come from Circle itself or from third parties. According to the company, USDC in circulation is approaching 73 billion dollars, up 19% year on year. According to CoinDesk data cited by Journal du Coin, the issuer of the world’s second-largest stablecoin accounts for nearly a quarter of the market, far behind Tether and its USDT, which holds nearly 60%.

Tazapay, Arc, charter: the levers already in place

Unlike the list of markets, several pieces of the push are already in place. They are not of the same kind:

  • A completed acquisition. In September, Circle bought Singapore-based payments company Tazapay for 400 million dollars. The deal gives it access to local banking and payment networks in more than 100 markets. It is the most concrete lever: a digital dollar does not circulate without gateways to local accounts and currencies.
  • A technical launch. The company has launched Arc, a blockchain built for payments.
  • A regulatory charter. In July, Circle obtained a federal trust bank charter in the United States.

Jeremy Allaire also credits regulatory clarity, starting with the US GENIUS Act on stablecoins, with encouraging adoption. Finally, he points to an emerging use: artificial intelligence agents, software capable of settling small payments on their own for online information and services. A lead put forward by the executive, with no figures to back it up in the source.

Why stablecoins find takers where banks are lacking

The mechanism is simple. A stablecoin is a cryptocurrency designed to keep a fixed one-to-one value with a traditional currency, in this case the dollar. Where opening a bank account remains difficult, holding dollars on a phone makes it possible to pay, save money or receive funds from abroad without going through a branch.

The stakes therefore go beyond trading. Stablecoins are making inroads into everyday payments and international transfers, and Circle is taking on banks and payment companies on their own turf, that of cross-border money. These new markets are also Tether’s historical stronghold, where the USDC issuer is seeking to compete with it.

For the countries concerned, it is a form of digital dollarisation: the more transactions are settled in dollar-backed tokens, the less the local currency serves as an intermediary. A gain in convenience for users, a question of monetary sovereignty for the authorities. The source says nothing about how the central banks in these regions are reacting.

International payments: what this means for Swiss players

The source does not mention any Swiss player. The announcement nonetheless outlines a balance of power that also concerns payment companies and stablecoin projects operating from Switzerland: facing them is an issuer that combines an acquired local network, its own blockchain and a federal banking charter. In international payments, competition is no longer played out on fees alone, but on access to local networks.

The executive’s tone also deserves the banks’ attention. Jeremy Allaire encourages those developing their own digital currencies, while arguing that banking, after long keeping newcomers at bay, is no longer in control. A statement, not an observation: above all, it reflects Circle’s ambition.

Europe, for its part, regulates its stablecoins under MiCA, a framework in which Circle’s USDC settled in early. The euro stablecoin Qivalis has thus secured its authorisation, two years after its American rival. For now, Tether keeps the upper hand with nearly 60% of the market, and the battle for cross-border payments is only just beginning.

Sources

  • Journal du Coin: “Circle: USDC targets some forty new emerging markets”