Circle is preparing to expand into about 40 emerging and developing countries, chief executive Jeremy Allaire told Reuters, as the company positions itself for a broader phase of stablecoin adoption.
The move matters because Circle ranks as the largest regulated stablecoin issuer globally, with roughly a quarter of the market, giving its international push direct implications for the reach of USDC and for Circle's stock story.
Allaire made the comments during the IMF and World Bank meetings in Bangkok, where he described blockchain as moving out of the early adopter phase and into mainstream scaling.
Why Circle Is Targeting Emerging Markets
Allaire linked the expansion to rising demand across Southeast Asia, Latin America, Africa and the Middle East, where businesses and individuals are seeking ways to take part in an internet-based economy.
He also said stablecoin adoption is happening mostly outside the United States, underscoring why the company is looking abroad for its next stage of growth.
The company's strategy reflects a wider pattern in stablecoin use, with demand increasingly coming from payments and financial infrastructure needs rather than only from crypto-native users.
In that context, Circle appears to be treating stablecoins less as a niche settlement tool and more as an entry point into mainstream transactions, particularly in places where local banking and payment systems may be less flexible.
A broader presence across multiple markets could make it easier for regional partners to build compliant stablecoin services, though it depends on regulatory and banking integration remaining workable in each jurisdiction.
Payments Push and the Tazapay Deal
Circle's geographic ambition is being paired with a targeted expansion in payments infrastructure.
As part of that effort, Circle struck a deal to buy Tazapay, a Singapore-based cross-border payments platform, in an all-stock transaction valued at $400 million that is expected to close in 2027, Cointelegraph reported.
If completed, the acquisition would fit Circle's effort to scale beyond early adopters and deepen its presence in cross-border payments.
Cross-border payments are a natural proving ground for stablecoins because they demand speed, transparency and predictable settlement, characteristics dollar stablecoins are designed to provide.
Still, integration and regulatory alignment are likely to determine whether the acquisition accelerates usage in the targeted regions, and a deal's headline value does not automatically translate into faster adoption unless the acquired platform can expand its partner base, satisfy compliance requirements and cut costs enough to make customers choose stablecoin settlement over traditional alternatives.
The practical question for investors and operators is whether this broader footprint will produce sustained usage rather than one-off pilots.
USDC Usage and Market Position
Circle earns income from the reserves behind USDC, so growth in circulation and usage remains central to the business.
USDC circulation reached $73.3 billion in the second quarter, up 19% from a year earlier.
By market capitalization, USDC still trails Tether's USDt as the second-biggest dollar-backed stablecoin, but Bernstein said it has made substantial gains in transaction activity.
Bernstein's analysis, cited by Cointelegraph, found that USDC's share of adjusted stablecoin transaction volume climbed from roughly 40% in 2025 to above 60% so far in 2026, moving ahead of USDt on that measure.
That matters because transaction volume is often used as a proxy for how actively stablecoins are moving across exchanges, payment rails and settlement flows, while market capitalization can reflect price and liquidity.
Sustained gains in transaction share can indicate real adoption by payment service providers and market participants, though readers should watch how adjusted volume is defined and whether the shift reflects broader usage or a change in where activity is routed.
Arc, AI Payments and Revenue Beyond Reserves
Circle's Arc system has been adopted by firms including BlackRock, Visa and Standard Chartered.
On an earnings AMA, Allaire said Arc's public Mainnet launches on September 16 and said AI agents are driving use.
Those AI agents are being used to carry out very small payments, frequently amounting to fractions of a cent, in exchange for web research and data.
Bernstein analysts also highlighted early signs of stablecoin usage tied to payments executed by AI agents, and if automated systems increasingly need programmable, low-volatility settlement assets, dollar stablecoins like USDC could become a default bridge currency for certain workflows, though the durability and scale of that activity beyond early experiments remains uncertain.
Allaire has also said Circle is building other revenue lines beyond reserve income, including its payments network and Arc.
Regulation, Competition and What Comes Next
In July, Circle secured a federal bank charter, placing it among the first stablecoin issuers to do so.
The U.S. Genius Act is set to take effect in January, and Allaire described it as a watershed moment on the grounds that the world will have legal digital dollars.
At the same time, banks in the United States and Europe are developing their own stablecoins, adding competitive pressure as Circle expands abroad.
Allaire said he views that trend as a sign of a healthy market, even as Tether continues to hold a much larger share of the market.
That gap matters for Circle stock as it expands, especially with the shares down 23% over the last six months.
Bernstein analysts have turned bullish on Circle and anticipate a new growth cycle for USDC over the next 12 months, pointing to renewed momentum in broader crypto markets, improving U.S. regulatory clarity, the growth of tokenized capital markets and a wider role for stablecoins in payments.
Circle's next steps will likely depend on whether its market expansion and payments strategy translate into sustained USDC usage, and for the rest of 2026 and into 2027 investors should monitor regulatory developments affecting stablecoins alongside concrete evidence that transaction share growth holds up across regions and partners.
Conclusion
Circle is set on a much wider international buildout, with roughly 40 developing markets in its sights and a payments acquisition that could support that push. The company enters that next phase with a large regulated position in stablecoins, rising USDC circulation and new infrastructure such as Arc, but it still trails Tether in overall market share. The next concrete milestones are the Genius Act taking effect in January and the expected closing of the Tazapay deal in 2027.
Frequently Asked Questions
How many emerging markets is Circle planning to enter?
Circle is preparing to expand into about 40 emerging and developing countries, according to CEO Jeremy Allaire. He told Reuters the company is positioning for broader stablecoin adoption as demand grows outside the United States.
Why is Circle expanding into Southeast Asia, Latin America, Africa and the Middle East?
Allaire said demand is rising in those regions as individuals and businesses look for ways to participate in an internet-based economy. The expansion also reflects growing stablecoin use in payments and financial infrastructure, not just among crypto-native users.
What is Circle's Tazapay acquisition and when will it close?
Circle agreed to buy Singapore-based cross-border payments platform Tazapay in a $400 million all-stock deal, Cointelegraph reported. The transaction is expected to close in 2027 and would support Circle's broader payments expansion.
How large is USDC circulation now?
USDC circulation reached $73.3 billion in the second quarter, up 19% from a year earlier. Circle earns income from the reserves behind USDC, making circulation growth important to its business.
How does USDC compare with Tether in 2026?
USDC remains behind Tether's USDt in market capitalization, but Bernstein said USDC has gained sharply in transaction activity. Its share of adjusted stablecoin transaction volume rose from about 40% in 2025 to more than 60% so far in 2026.
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