Circle’s CEO and chairman, Jeremy Allaire, says the stablecoin issuer is preparing to expand into roughly 40 developing markets, positioning the company for what he describes as a shift from early blockchain experimentation to wider, mainstream usage.
Speaking to Reuters on Friday on the sidelines of the IMF and World Bank meetings in Bangkok, Allaire framed the move as part of a broader “transition” that should increase stablecoin demand as businesses and individuals look for ways to participate in an internet-based economy.
Key takeaways
- Circle is targeting expansion into about 40 developing markets, according to Jeremy Allaire.
- Allaire links the growth push to rising stablecoin demand in Southeast Asia, Latin America, Africa, and the Middle East.
- Bernstein analysts expect a new USDC growth cycle supported by market recovery, clearer US rules, and tokenized capital market adoption.
- Bernstein reports USDC has overtaken Tether’s USDt in adjusted stablecoin transaction volume share in 2026.
- Circle has also agreed to acquire Singapore-based cross-border payments platform Tazapay in a $400 million all-stock deal expected to close in 2027.
Circle’s expansion plan and the “mainstream scaling” thesis
Circle’s stated push into developing regions reflects a recurring theme in stablecoin adoption: beyond crypto-native users, the demand increasingly comes from payments use cases and financial infrastructure needs where digital rails can reduce friction.
Allaire told Reuters that demand is rising across parts of Southeast Asia, Latin America, Africa, and the Middle East as companies and individuals seek access to internet-based economic activity. His comments suggest Circle views stablecoins less as a niche settlement tool and more as an on-ramp to mainstream transactions—especially where local payment systems and banking infrastructure may be less flexible.
For investors and operators, the practical question is whether geographic expansion will translate into sustained usage rather than one-off pilots. Circle’s expansion into multiple markets could lower the “adoption barrier” for regional partners building compliant stablecoin services, but it also depends on regulatory and banking integration staying workable in each jurisdiction.
Why analysts think USDC could lead the next growth cycle
Cointelegraph previously reported on Aug. 24 that Bernstein analysts were bullish on Circle and anticipated a new growth cycle for USDC that could meaningfully benefit the company over the next 12 months.
Bernstein pointed to several potential drivers. These include renewed momentum in broader crypto markets, improving US regulatory clarity, the growth of tokenized capital markets, and a wider role for stablecoins in payments. The analysts also highlighted early signs of stablecoin usage tied to payments executed by AI agents.
While “AI agents” remains a broad concept, the underlying investment relevance is straightforward: if automated systems increasingly require programmable, low-volatility settlement assets, dollar stablecoins like USDC could become a default bridge currency for certain workflows. What remains uncertain is the durability and scale of that activity beyond early experiments.
USDC’s transaction activity edge over USDt
Although USDC is still the second-largest dollar-backed stablecoin by market capitalization—behind Tether’s USDt—Bernstein said USDC has made substantial gains in transaction activity.
According to the Bernstein analysis cited by Cointelegraph, USDC’s share of adjusted stablecoin transaction volume rose from about 40% in 2025 to more than 60% so far in 2026, overtaking USDt on that measure.
This matters because transaction volume is often treated as a proxy for ecosystem intensity—how frequently stablecoins are actually moving across exchanges, payment rails, and settlement flows. Market cap can reflect price and liquidity, but sustained transaction share gains can indicate real adoption by payment service providers and market participants.
Still, readers should watch how “adjusted” volume is defined and whether the change reflects broader usage or a shift in where activity is being routed. The difference between being large in supply versus being active in usage can flip depending on market structure, compliance pathways, and infrastructure partnerships.
Tazapay acquisition signals a push deeper into cross-border payments
Circle’s geographic ambition is also supported by a targeted expansion in payments infrastructure. On Sept. 8, Cointelegraph reported that Circle agreed to acquire Singapore-based cross-border payments platform Tazapay in a $400 million all-stock deal expected to close in 2027.
If completed, the acquisition would align with Circle’s emphasis on scaling beyond early adopters. Cross-border payments are a natural proving ground for stablecoins because they demand speed, transparency, and predictable settlement—characteristics dollar stablecoins are designed to provide.
However, integration and regulatory alignment are likely to be key to whether the acquisition accelerates usage in the targeted regions. A deal’s headline value doesn’t automatically translate to faster adoption unless the acquired platform can quickly deepen partner networks, meet compliance expectations, and lower costs enough for customers to choose stablecoin-based settlement over traditional alternatives.
What to watch next
Circle’s next steps will likely hinge on whether its market expansion and payments strategy translate into sustained USDC usage—especially as analysts point to regulatory clarity, tokenized assets, and new payment workflows. For the rest of 2026 and into 2027, investors should monitor both regulatory developments affecting stablecoins and concrete evidence of transaction share growth holding up across regions and partners.
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