Circle CEO Jeremy Allaire said the company views its dollar-pegged stablecoin as neutral financial infrastructure with network effects, rather than a product meant to compete with existing payment companies.
Speaking on CNBC’s Squawk Box during the World Economic Forum at Davos, Switzerland, Allaire said Circle does not view card networks such as Visa or Mastercard as competitors, describing them instead as “significant partners.”
According to Allaire, stablecoins are “network effect businesses,” with usage and circulation increasing as more developers and institutions integrate, adding that Circle operates as a “neutral company” that does not compete with banks, payment companies or exchanges.
He also said the long-term implications of stablecoins remain unknown.
Over time, the cost of storing and moving money around goes to zero. In that future world, where AI agents are doing the money movement, it’s going to be hard to know exactly what the payment business model is over that period of time.”
Jeremy Allaire, right, speaks during a Squawk Box interview at the World Economic Forum. Source: CNBC
Asked whether the stalled Digital Asset Markets Clarity bill could pass in the US Congress this year, Allaire said: “There’s clearly a bipartisan desire to do that,” adding that the bill extends beyond stablecoins to address the broader use of digital tokens in capital markets, which is in the interest of traditional banks and crypto companies alike.
Circle is the issuer of $USDC ($USDC), the second-largest stablecoin by market capitalization. The company went public in June 2025, pricing its initial public offering at $31 per share before opening trading at $69.
The stock rose as high as $263.45 in late May, but has since retraced to $72, according to Yahoo Finance data.
Market performance of Circle shares since the NYSE listing. Source: Yahoo Finance
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Stablecoin competitors emerge in 2025
The rapid expansion of the stablecoin market has brought a wave of new competitors challenging Circle’s position.
In March, Fidelity Investments was reported to be in the final stages of testing a US dollar–pegged stablecoin. The $5.8 trillion asset manager plans to launch the stablecoin through its crypto arm, Fidelity Digital Assets.
About a month later, Stripe said it was building a US dollar–backed stablecoin for companies outside the United States, the United Kingdom and Europe. The stablecoin will be powered by Bridge.
Crypto payments company MoonPay is also launching a US dollar–backed stablecoin aimed at everyday payments, with a planned release in early 2026.
The total stablecoin market capitalization was $309 billion on Thursday, according to DefiLlama data.
Circle’s $USDC accounts for about $74.2 billion of the market, ranking second behind Tether’s USDt (USDT), which remains the dominant issuer with about $186.7 billion in circulation.
Stablecoin market cap. Source: DefiLlama
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