Circle CEO pegs 40% stablecoin growth as base case: ‘Everybody has to participate’

Circle CEO Jeremy Allaire stated that stablecoin adoption is accelerating within the global banking system, setting a 40% compound annual growth rate (CAGR) as a reasonable baseline as institutions move from experimentation to production use. Speaking in Davos, Allaire noted that major banks are discussing deploying stablecoins for payments, capital markets, and tokenized assets, emphasizing that "everybody has to participate in the technology." While some forecasts suggest stablecoin supply could exceed $6 trillion, Allaire prefers the more measured 40% CAGR projection based on increasing utility, rather than speculative demand. This trend aligns with ARK Invest's view that stablecoins are displacing other crypto use cases, leading ARK to significantly cut its forecast for Bitcoin's safe-haven adoption in emerging markets. Furthermore, Allaire addressed regulatory debates, characterizing stablecoins as "cash payment instruments" and noting that current disagreements focus on incentive structures, such as direct interest payments, rather than their fundamental existence.

(Source：The Block)