Jeremy Allaire, CEO of Circle, believes there is a significant opportunity for a yuan-backed stablecoin as China aims to increase the global use of its currency through digital innovation. Allaire highlighted the potential for stablecoins to facilitate international payments and noted the increasing technological competition in currency markets.
Jeremy Allaire, CEO and co-founder of Circle Internet Group, the issuer of one of the world's biggest stablecoins, attends an interview, on the day of his company's IPO at the New York Stock Exchange , in New York City, US, June 5, 2025.
HONG KONG — Circle Internet Group sees 'tremendous opportunity' for yuan-backed stablecoin as digital money becomes increasingly integrated into global trade and finance, said the chief of the world's largest regulated stablecoin issuer. China wants to expand the yuan's role in the global financial system, and stablecoins have emerged as a way to 'export' a currency by making it easier for global payments, Jeremy Allaire, co-founder and CEO of Circle, told Reuters.
Stablecoins are a type of cryptocurrency designed to maintain a constant value and are usually pegged to a fiat currency such as the US dollar. 'There's a tremendous opportunity for a yuan stablecoin,' Allaire said in an interview in Hong Kong. 'If there's currency competition, you want your currency to have the best features possible. This is becoming a technological competition.'
Reuters reported last August, citing sources with knowledge of the matter, that the country was considering yuan-backed stablecoin to boost adoption of its currency globally. Such a move, if realised, would mark a major shift in China's approach towards digital assets. The country banned cryptocurrency trading and mining in 2021 due to concerns about the stability of the financial system. China's central bank reaffirmed its tough stance on virtual currencies in November amid a market frenzy over digital assets.
Use of stablecoins, which offer faster and cheaper transactions, has surged globally in recent years. Circle's USDC, which is backed by the US dollar and is the world's second most-held stablecoin, grew 72 per cent year-on-year in circulation to US$75.3 billion by the end of 2025, according to its quarterly results.
Allaire said Circle recorded 'several billion dollars' in USDC transaction growth following the outbreak of the US-Iran war as heightened geopolitical risks boosted demand for portable digital dollars. Hong Kong is a hub for cross-border payments and settlement, Allaire said, adding that Circle saw significant opportunities to work with Hong Kong dollar stablecoins to integrate them into global platforms.
Circle is also at the centre of debate over US crypto regulation. The Clarity Act has been closely watched globally, particularly over whether it could restrict interest-bearing stablecoin products being marketed as bank savings.
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