Circle, the issuer of the second-largest stablecoin USDC, plans to expand into roughly 50 emerging and developing markets as demand for digital-dollar payments grows across Southeast Asia, Latin America and the Middle East. CEO Jeremy Allaire told Reuters in an interview Friday that businesses and individuals in those regions increasingly use stablecoins for payments and financial services.

USDC holds about $73.3 billion in circulation, according to CoinDesk data, and commands roughly a quarter of the stablecoin market. Tether's USDT remains the leader with nearly 60 percent share — the benchmark Circle's expansion is designed to challenge in markets where USDT has traditionally dominated.

"We're kind of going through an inflection point...a transition right now," Allaire said. "That transition is essentially moving from the early adopter phase of blockchain technology into the mainstream scaling phase."

What infrastructure backs the push?

Circle has assembled three building blocks for the expansion. In July it secured U.S. federal trust bank approval, giving it a regulated banking charter at the federal level. It has also agreed to acquire Singapore-based payments firm Tazapay for $400 million, a deal that provides access to local banking and payment networks across more than 100 markets. And it launched Arc, its own blockchain built for payments and financial transactions.

The Tazapay acquisition matters operationally: it plugs Circle into local rails rather than forcing reliance on partner banks market by market. That shortens settlement paths for cross-border transfers, the segment where stablecoins now compete directly with banks and payment companies.

How does regulation shape the timing?

Allaire said clearer rules, including the U.S. GENIUS Act governing stablecoins, are encouraging wider adoption. The federal framework defines reserve and disclosure requirements for payment stablecoins, reducing the compliance uncertainty that had kept some payment firms and banks on the sidelines.

Banks are also developing their own digital currencies, a development Allaire welcomed.

"There's a very, very long time where the banking industry fought successfully to keep other people out, and I think they are no longer in charge, and the innovators are having their day," he said.

Stablecoins — tokens designed to maintain a fixed 1:1 value against traditional currencies — now move beyond crypto trading into everyday payments and international money transfers. For Circle, each new market means competing for a share of cross-border payment flows rather than exchange liquidity alone.

Allaire also flagged a newer demand source: artificial intelligence agents, software programs that independently make small payments for information and online services using USDC.

What comes next?

The expansion sets up a direct contest with Tether across emerging markets, with Circle betting that regulated status, the Tazapay network and the Arc chain will differentiate USDC where USDT's over-the-counter channels have held sway. The outcome will register in circulation and market-share figures over the coming quarters.