Circle CEO Allaire describes the next scene for stablecoins: the global payment trajectory

TLDR: Cross-border settlement becomes a core application scenario

USDC's growth deepens Circle's institutional financial coverage

The annualized transaction volume of the Circle payment network reached US$14.7 billion, a month-on-month increase of 76%.

As of the end of the second quarter, USDC liquidity reached US$73.3 billion, and quarterly chain trading volume surged 151% to US$14.8 trillion.

After the Visa stablecoin settlement pilot was expanded to nine blockchains, the annualized transaction volume reached US$7 billion.

The Circle network has access to 175 institutions, and Nickel has expanded its payment range to more than 190 countries and 100 currencies.

stablecoins: From crypto transactions to financial infrastructure

stablecoins are moving from crypto transactions to infrastructure systems such as payments, treasury management, collateral, savings and cross-border finance. Circle CEO Jeremy Allaire said at the company's earnings Q & A session on August 19 that the digital dollar has demonstrated product-market fit in a number of financial activities.

In the digital asset market, stablecoins have been used as cash, collateral and settlement assets on platforms that operate around the clock. However, as large companies increasingly use digital dollars for treasury management, internal transfers and working capital, its role is expanding.

Circle CEO: What real financial problems can stablecoins solve first?

Allaire also pointed out that demand is rising in emerging and global markets, with households and businesses using digital dollars as a savings tool. For some users, these assets provide an alternative to traditional U.S. dollar bank accounts while supporting business, investment and international payments.

As traditional assets such as stocks and commodities begin to migrate to blockchain-based transaction infrastructure, tokenization is further expanding this coverage.

Cross-border settlement becomes a core application scenario

In this context, cross-border payments are becoming one of the most clear areas for stablecoins to enter mainstream financial operations. Allaire said financial institutions can use digital dollars as a settlement medium between counterparties, reducing their reliance on traditional bank settlement windows.

Recipients can also retain this stable asset rather than immediately convert it into local currency, adding a new application scenario to simple transfers. Circle Payments Network reflected this shift, with annualized transaction volume based on activity over the past 30 days reaching $14.7 billion as of the quarter's end.

This figure increased by 76% month-on-month, and the number of connected financial institutions increased by 29% to 175. Nickel has also connected the network to payment infrastructure covering more than 190 countries and 100 currencies.

Similar infrastructure is being developed in the broader payments industry. Visa said that its stablecoin settlement pilot has expanded to nine blockchain support, with annualized transaction volume reaching US$7 billion.

Visa has previously introduced USDC settlement for participating U.S. issuers and acquirers, allowing institutions to achieve seven-day settlement. This expansion addresses the costly pain points of traditional remittances. World Bank data shows that the average global cost of transferring $200 is 6.36%, more than double the United Nations target of 3%.

USDC growth deepens Circle's institutional financial coverage

In addition to payments, Circle's operating data shows its rapidly expanding role in the broader financial infrastructure. At the end of the second quarter, USDC circulation reached US$73.3 billion, a year-on-year increase of 19%.

Meanwhile, quarterly on-chain trading volume climbed 151% to US$14.8 trillion, and Circle achieved revenue and reserve gains of US$701 million. Along with this growth, institutional adoption is also expanding, and USDC's influence in traditional financial services continues to increase.

Bank of New York Mellon has added direct USDC casting and redemption capabilities to its digital asset custody platform, and Standard Chartered Bank has launched integrated USDC access services. Marex completed initial margin transactions based on stablecoins in regulated derivatives clearing, allowing USDC to operate as collateral in traditional markets.

Allaire also pointed out that AI agents and retail merchant payments are new channels to further expand applications. Circle's Agent Stack now includes more than 900 paid services, and 99.3% of x402 agent payments are settled in USDC.

The company is also preparing its stablecoin-focused blockchain Arc, which plans to launch on its main network on September 16, with more than 100 institutions and ecosystem builders participating. Taken together, the data suggests that stablecoins are moving from being a pipeline tool in the crypto market to a broader payment and settlement track in global finance.