USDC leads the growth of stablecoins

The stablecoin market continues to solidify as a key component in the transformation of global finance.

In this context, the financial world’s attention is particularly focused on USDC (USD Coin); among many other reasons, because the Trump administration is considering including this asset as part of the “first crypto strategic reserve of the United States,” alongside Solana and Ripple’s XRP. But beyond future expectations, USDC, the stablecoin issued by Circle, is in the news because it has reached $20 billion in transactions in 2024.

Circle’s global banking network offers wholesale access to USDC in major financial centers, enabling use cases like global payroll, payments to suppliers, and remittances. Circle is the issuing fintech company that also issues EURC and has become the world’s first stablecoin issuer to comply with the European Union’s Markets in Crypto-assets (MiCA) Regulation.

Additionally, USDC is backed by high-liquidity, cash-equivalent assets, ensuring that it can always be redeemed for USD on a 1:1 basis.

Latin America: a key market
The region has adopted stablecoins as an essential tool to combat inflation, devaluations, and the limitations of traditional financial systems. In countries like Argentina, Mexico, and Brazil, USDC has found fertile ground to drive financial inclusion, offering an alternative to local currencies.

The region has also witnessed a surge in the use of stablecoins for remittances, which enable fast and low-cost transfers.

Daniel Mangabeira is the VP of Policy & Strategy for Latam at Circle, and was one of the prominent speakers at the Fintech Summit Latam in 2023. In an interview with Frecuencia Money, he highlights regulatory development in Latin America as a positive aspect for the sector’s growth: “The regulatory landscape for stablecoins in Latin America has evolved positively, with significant steps in the right direction. Globally, stablecoin regulations are being designed and may serve as inspiration for the region, as Latin American countries could base their implementations on successful examples elsewhere. Being regulated in several jurisdictions and actively participating in deep regulatory discussions, Circle is well-positioned to provide valuable insights to future regulatory frameworks.”

Mangabeira also pointed to the outlook for 2025: “We definitely anticipate greater interest in stablecoins, their mechanics, and the benefits they could bring to create a more effective, faster, and cost-efficient financial system. With these expectations in mind, Circle is already looking to add value to these discussions, advocating for principle-based regulations that ensure clear standards for reserves and disclosure, customer protection, and technological neutrality. We urge regulators in the region to continue moving forward with these discussions, and we assure that Circle will continue to play a proactive role in shaping a robust and effective regulatory environment.”

Market transition
In the annual “USDC Economy 2025 Report,” Circle highlights a 78% year-on-year growth in the circulation of this stablecoin, reflecting its increasing importance and participation in global trade, payments, and financial inclusion. This growth positions USDC as one of the most demanded stablecoins globally, surpassing the growth of other key players in the sector.

In a global stablecoin market worth $206.52 billion, USDC holds a solid position with a market cap of $51 billion, just behind Tether (USDT), which leads with $137.5 billion.

Key factors driving growth
The rapid growth of USDC can be attributed to several factors:

• Regulatory clarity
  USDC is the first major global stablecoin to comply with the EU’s MiCA regulation and new listing rules in Canada.
• Connection with traditional finance
  Circle’s global banking network provides wholesale access to USDC in key financial centers, facilitating use cases such as global payroll, supplier payments, and remittances.
• Blockchain interoperability
  Circle’s Cross-Chain Transfer Protocol (CCTP) has improved interoperability between blockchain networks.

USDC and the future of integrated finance
Jeremy Allaire, CEO of Circle, emphasizes that USDC is building a crucial bridge between traditional and digital finance: “USDC has become a platform for global prosperity, enabling real-time and low-cost value exchanges. This not only expands economic opportunities but also strengthens the internet-based financial system.”

The accessibility of USDC has grown significantly, now available to over 500 million users through various digital wallets and apps. Strategic partnerships, such as Binance adopting USDC for its corporate treasury, have expanded its reach to 250 million global users.

Impact on financial inclusion
One of USDC’s most notable achievements is its positive impact on financial inclusion. By providing secure and low-cost access to digital dollars, USDC empowers unbanked populations in over 180 countries. Furthermore, with native availability on 16 blockchains, its accessibility continues to expand.

Circle has also diversified its offering with EURC, a euro-backed stablecoin, which is already the largest of its kind and records over $1 billion in weekly transfer volume.

All of this marks a milestone in the evolution toward a more inclusive and efficient financial system. In a context where the adoption of stablecoins is rapidly growing, USDC is positioned as a key player in facilitating trade, improving financial accessibility, and promoting innovation in the sector.