By Tom Whitfield

Circle plans to expand USDC into roughly 40 emerging and developing countries, CEO Jeremy Allaire told Reuters on the sidelines of the IMF and World Bank meetings in Bangkok. The stablecoin issuer is betting that organic demand from Southeast Asia, Latin America, Africa and the Middle East can carry digital dollars into what Allaire called the "mainstream scaling phase" of blockchain technology.

The move comes with scale already behind it. USDC circulation rose 19% year over year to $73.3 billion in the second quarter, and the token holds about 25% of the stablecoin market, against roughly 60% for Tether's USDT. In market-share terms, Circle remains the clear number two — a gap the emerging-markets push is designed to close.

What is funding the expansion?

Circle carries two dedicated resources into the campaign. The company completed a $400 million acquisition of the payments firm Tazapay and received a $100 million strategic investment from Binance, Reuters reported. Both deals deepen Circle's distribution rails in exactly the corridors it now targets: cross-border payments across Asia, Africa and Latin America.

Regulatory assets reinforce the balance sheet. Circle secured a federal banking charter in July and has pursued a New York trust charter, giving it direct access to the U.S. financial system that most stablecoin issuers lack.

What does the GENIUS Act change?

The U.S. stablecoin law, the GENIUS Act, takes effect in January. Allaire framed it as a turning point for the entire market, saying it would give the world "legal digital dollars" and calling it "a watershed moment."

The law creates the first federal framework for payment stablecoins, and Allaire expects banks to respond by issuing their own tokens. He welcomed that competition. After a long stretch in which incumbents blocked outsiders, he said, "they are no longer in charge, and the innovators are having their day."

Can AI agents drive USDC usage?

Allaire credited AI agents making tiny machine-to-machine payments with boosting USDC usage, a line of business Circle has pushed by positioning USDC as the currency of AI agents. Circle's Arc network has been adopted by BlackRock, Visa and Standard Chartered, according to Reuters.

The same technology cuts both ways. Allaire warned that AI heightens security risks for financial infrastructure. "If you're not concerned about it, then your head is in the sand, right?" he said.

What happens next

Circle's expansion will test whether regulated stablecoins can convert organic demand in emerging markets into sustained circulation growth. The January effective date of the GENIUS Act gives the issuer a regulatory runway — and a deadline — as it races to narrow Tether's 60% market-share lead.