Circle CEO Jeremy Allaire said the company views its dollar-pegged stablecoin as neutral financial infrastructure with network effects, rather than a product intended to compete with existing payments companies.
Allaire speaks on CNBC’s Squawk Box during the World Economic Forum in Davos, Switzerland he said Circle doesn’t see card networks like Visa or Mastercard as competitors, calling them “essential partners.”
Stablecoins are “network effect businesses” that grow in employ and volume as more developers and institutions integrate, according to Allaire, adding that Circle operates as a “neutral company” that does not compete with banks, payments companies or exchanges.
He also said that the long-term implications of stablecoins remain unknown.
Over time, the cost of storing and moving money drops to zero. In a future world where money flows are handled by artificial intelligence agents, it will be challenging to determine exactly what the payment business model will be during this period.
Asked whether the stalled Digital Asset Markets Transparency Act could be passed in the U.S. Congress this year, Allaire said: “There is clearly a bipartisan desire to do so,” adding that the bill goes beyond stablecoins and includes the broader employ of digital tokens in capital markets, which is in the interest of both conventional banks and crypto firms.
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 and then listing at $69.
The company’s shares rose as high as $263.45 in slow May, according to Yahoo Finance data, but have since fallen to $72.
Related: Bermuda is partnering with Coinbase and Circle for a “fully on-chain” economy.
Stablecoin competitors will emerge in 2025
The rapid growth of the stablecoin market has brought a wave of recent competitors challenging Circle’s position.
In March, it was reported that Fidelity Investments was in the final stages of testing a U.S. dollar-pegged stablecoin. The $5.8 trillion asset manager plans to launch a 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 US, UK and Europe. Stablecoin will be powered by Bridge.
Crypto payments company MoonPay is also launching a US dollar-backed stablecoin for everyday payments, with a launch planned for early 2026.
According to DefiLlama, the total stablecoin market capitalization was $309 billion on Thursday data.
Circle’s USDC accounts for about $74.2 billion of the market, ranking second behind tether USDT (USDT), which remains the dominant issuer with about $186.7 billion in circulation.
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