Circle CEO Jeremy Allaire said at Davos that USDC functions as a “neutral layer” for global finance rather than a direct competitor to card networks. He argued the stablecoin’s design — interoperability, programmability and 24/7 settlement — positions it as shared infrastructure that other firms can build on to reduce costs and accelerate settlement.
Allaire framed USDC as an open settlement medium that complements existing payment rails. By running on public blockchains and supporting cross‑chain “gateway” connectivity, USDC enables near‑instant, round‑the‑clock transfers and programmability that automates settlement and conditional payments. Circle emphasizes interoperability so banks, fintechs and wallets can access the same unit of value across different chains and services.
That architecture contrasts with proprietary card networks, which operate permissioned systems with controlled membership and fee structures. Circle presents USDC as an enabler of network effects — a shared rail for value that other providers can plug into rather than a closed‑loop replacement.
The distinction matters for banks, payment processors and merchants because USDC’s adoption and integrations could reshape settlement rails without displacing incumbent networks. On-chain metrics point to rapid uptake: USDC recorded $9.6 trillion of on-chain volume in Q3 2025, up 680% year‑over‑year.
USDC’s technical role and operational levers
Market and partnership developments cited by Circle underline the integration thesis. Major payment networks have moved to pilot or support stablecoin settlement, and Visa has enabled USDC settlement with some issuers to shorten settlement windows.
Merchant and payments vendors have announced product launches that accept or route USDC for low‑latency payments, and national experiments — including a Bermuda initiative to expand USDC usage — show public‑sector interest in on‑chain rails.
Circle’s own figures show broad expansion in 2025: circulation rose 78% year‑over‑year and market cap increased by 73% to roughly $75 billion. The broader stablecoin market was reported at $316 billion in January 2026, capturing about 10.19% of crypto market value. Allaire projects roughly 40% annual growth for stablecoins as banking integration accelerates.
For investors, product teams and compliance officers, the near term will test this infrastructure thesis. Early‑2026 launches and continued pilots by large payment networks will reveal whether stablecoins reduce operational latency and settlement costs in live flows, and whether incumbent players integrate them as complementary rails or shift to more proprietary token models.
Market participants should watch further banking integrations, settlement pilots and any regulatory clarifications that affect custody, issuance and cross‑border transfers, since those developments will determine how quickly USDC’s “neutral layer” model translates into measurable cost and liquidity advantages.
