During the World Economic Forum in Davos, Circle’s CEO Jeremy Allaire stated that their stablecoin, USDC, serves a neutral financial infrastructure instead of positioning itself against banks and card networks like Visa or Mastercard, which he referred to as “significant partners.”

Allaire emphasized that stablecoins function as “network effect businesses,” meaning their adoption and utility grow as they are integrated by developers and institutions. He expressed that Circle operates as a “neutral company” that does not compete with banks, payment providers, or exchanges.

Over time, the cost of storing and moving money around goes to zero. In that future world, where AI agents are handling money movement, it’s going to be challenging to determine the exact payment business model during that time.

Jeremy Allaire speaks during a Squawk Box interview at the World Economic Forum. Source: CNBC

When questioned about the stalled Digital Asset Markets Clarity bill, Allaire mentioned a bipartisan interest in advancing it, noting the bill addresses the broader use of digital tokens in capital markets, which aligns with the interests of both traditional banks and crypto firms.

Circle is the issuer of USDC, the second-largest stablecoin by market cap, which accounts for approximately $74.2 billion of the total stablecoin market.

The stablecoin sector is experiencing rapid growth, with emerging competitors challenging Circle’s position. Notable players include Fidelity Investments, which is finalizing a US dollar-pegged stablecoin for release, and Stripe, which is developing a stablecoin for international companies. Additionally, MoonPay is set to launch a US dollar-backed stablecoin targeted at everyday transactions.

The total market capitalization for stablecoins reached $309 billion, with Tether’s USDT leading in circulation.