Stablecoin Demand Surges in Emerging Markets as Circle Eyes Expansion
Demand for stablecoins is on the rise across Southeast Asia, Latin America, Africa, and the Middle East, as businesses and individuals increasingly seek access to the internet-based economy. Circle, a prominent stablecoin issuer, is reportedly planning to enter approximately 40 developing markets, according to CEO and Chairman Jeremy Allaire.
Speaking on Friday on the sidelines of the IMF and World Bank meetings in Bangkok, Allaire described the current moment as an “inflection point” for blockchain technology, transitioning from an early adopter phase to mainstream scaling.
Analysts at Bernstein have expressed optimism regarding Circle’s prospects, forecasting a new growth cycle for its USD Coin (USDC) stablecoin that could significantly benefit the company over the next year. Bernstein attributes this potential growth to several factors, including renewed momentum in cryptocurrency markets, increased regulatory clarity in the United States, the development of tokenized capital markets, and the growing adoption of stablecoins for payment purposes. The analysts also noted early indications of stablecoin usage in payments facilitated by artificial intelligence agents.
While Tether’s USDt remains the largest dollar-backed stablecoin by market capitalization, USDC has demonstrated substantial growth in transaction activity. Bernstein data indicates that USDC’s share of adjusted stablecoin transaction volume has surged from around 40% in 2025 to over 60% in 2026, surpassing USDt in this metric.
In a move to bolster its presence in the cross-border payments sector, Circle announced on September 8 its agreement to acquire Singapore-based platform Tazapay for $400 million in an all-stock deal, expected to finalize in 2027.
