Circle: Focusing On Adopting Stablecoins To Developing Country Markets

USDC stablecoins began to be adopted in developing countries. (Photo; Doc. Ledger Insight)

JAKARTA- Circle's leading stablecoin publisher is currently directing its focus on an international market that is showing an increasing adoption trend. Circle, based in the United States, notes that its 70% adoption of stablecoinUSDC comes from non-US regions.

According to Circle CEO Jeremy Allaire, the fastest growth occurred in emerging markets in Asia, Latin America, and Africa. He highlighted the demand for a "safe and transparent digital dollar" as one of the reasons behind this trend.

Not only Circle responded to this trend, Tether's chief technology, Paolo Ardoino, also revealed similar goals. Ardoino stressed Tether's intention to position stablecoinUSDT as a "safe tool for the emerging and developing country market" that has communities experiencing the impact of their national currency weight devaluation.

This development also seems to be in line with the reduced supply of USDC since early 2023, caused by declining demand and increased redeemation. This situation raises concerns over USDC liquidity, although Circle CEO Jeremy Allaire confirmed that the company issued USDC worth USD 5 billion (IDR 76 trillion) and redeemed USDC worth USD 6.6 billion (IDR 100 trillion).

In addition to observing the adoption trend in the international market, Circle has also collaborated with leading financial institutions around the world as part of its expansion strategy.

Although the crypto market has been sluggish since early last year, USDC managed to maintain market capitalization of more than 26 billion US dollars (Rp395 trillion). This happened after several negative sentiments, including the sale of large amounts of tokens by Binance. Coinbase CEO Brian Armstrong revealed that data shows USDC's market capitalization actually increased after Binance's sales of tokens.

With the changes taking place in the stablecoin landscape, such as the issuance of BUSD which was stopped by the New York Department of Financial Services (NYDFS), as well as the emergence of FDUSD and PYUSD, the stablecoin industry is increasingly showing the dynamics and the growing competition.