Circle chief executive Jeremy Allaire reportedly thinks stablecoins will become a regulated financial network all over the world.
Allaire says in a new interview with the South China Morning Post (SCMP) that Circle is acting as a test subject for global stablecoin regulation.
According to Allaire, stablecoin regulation is in its early days and the asset class will eventually witness regulatory clarity across the globe.
“As I like to say, we’re kind of the global regulatory guinea pig for stablecoins in that we’re a regulated player, we always have been. We’re globally adopted. Our view is that this is going to become regulated financial infrastructure everywhere in the world.”
Circle issues USDC, the second-largest stablecoin by market cap.
The stablecoin issuer CEO also argues that stablecoins will help streamline cross-border settlements.
“The more that you have those different fiat currencies online with stablecoins, the more… seamless cross-border transactions and FX (foreign exchange) transactions and programmable, composable finance can become. We want to be one of the most popular dollar stablecoins, but there will certainly be more than just Circle’s.”
Allaire says USDC will assist with trade settlements in Hong Kong but not China, where crypto mining and trading is banned.
“I don’t see a direct role for Circle there. However, I do believe that we’ll see offshore stablecoins grow… and we’ll see a really robust market for stablecoin FX and seamless convertibility.”
USDC aims to maintain a 1:1 peg with the US dollar and has a market cap of around $35 billion at time of writing.
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