Value of Dollars on the Internet: 2025 USDC Market Economics Report

Author: Circle

Compiler: Will Awang

We have already seen enough cases and consensus in 2024 to establish the status of stablecoin as the "killer" application. Stripe even used real money to acquire stablecoin service provider Bridge, setting the industry's highest acquisition transaction amount. With the release of clear signals from the current U.S. government’s supervision, 2025 will surely be a big year for the stablecoin market. Multiple stablecoin issuance entities, the issuance of various types of stablecoins, and the continuous enrichment of stablecoin application scenarios will emerge in endlessly.

Financial technology company Circle, as the issuer of USDC-compliant stablecoins, is one of the most successful projects in the world today. As a Pre-IPO project, Circle follows the route of the traditional capital market. So how to give a narrative to traditional finance and how to expand the application scenarios of traditional finance is a question for every stablecoin issuer and every company that claims to achieve Mass Adoption. The project parties need to learn and learn from it.

• The first level of narrative: the financial upgrade of the Internet . Circle is building a value interconnection network based on stablecoins to provide network upgrades for global finance. Blockchain brings the speed and scale of the Internet to the transfer of value. Note that the story here is a continuation of "Internet+" rather than an expansion of "Blockchain+". After all, all application layers today are built on the Internet.

• The second layer of narrative: Upgrading the Internet through USDC . USDC The digital dollar is a tokenized version of fiat currency that is loaded onto the internet, allowing individuals and businesses to move, spend, save, and store value with the same efficiency and scale that we transfer internet data today.

• Limited by financial infrastructure, the transmission of information and the transmission of funds in today's world are separated. The blockchain-based Web3 Value Internet directly embeds value into the architecture of the traditional Internet, enabling users to become owners of their data and other technical assets (including currency) and promoting value exchange. In this Web3 Internet of Value, USDC is the dollar of the Internet. USDC can use the innovations of the blockchain network to compensate for and strengthen the global banking and financial system.

• The third level of narrative: using network effects to expand application scenarios . The U.S. dollar and the Internet itself have powerful network effects. In the real world and on the Internet, the U.S. dollar is a currency with network effects. Blockchain technology gives USDC more powerful functions and new application potential than the traditional US dollar, while relying on the traditional Internet network for implementation. Circle is building an open technology platform based on USDC. Based on the strength and widespread use of the US dollar today, it will make full use of the scale, speed and cost advantages of the Internet to achieve similar network effects and practicality for financial services.

The establishment of the narrative and the expansion of rich application scenarios have contributed to the success of Circle USDC. Therefore, we compiled the 2025 State of the USDC Economy recently released by Circle to learn from it together.

The full text is 18,000 words, Enjoy below:

1. Executive summary by Jeremy Allaire

The past year has marked significant progress for USDC in terms of economic growth and application maturity. Globally, this trend is gaining momentum as more individuals and businesses realize the power of digital dollars on blockchain networks. Developers continue to find that they can use USDC and Circle's technology to build application platforms, making global commerce and finance more efficient, faster and inclusive.

Let’s look at the specific data of USDC in 2024:

• USDC in circulation increased by more than 78% year-on-year in 2024, which is faster than the growth of any other large stablecoin. At the same time, in November 2024 alone, the monthly trading volume reached US$1 trillion, while the historical trading volume exceeded US$18 trillion.

• The USDC user base is also strong and is becoming mainstream. Through expanded partnerships with leading digital asset exchanges, banks and wallets, USDC is now available to over 500 million end-user wallet products, supporting a range of use cases from digital capital market activities to U.S. dollar store of value, as well as the growing global A wave of payment apps.

USDC is a U.S. dollar-based stablecoin. In addition to the U.S. dollar's preeminent status in trade, payments, and global finance, there are three factors that are expected to accelerate the adoption and utility of USDC. It’s the same way technology history evolved, as dial-up Internet and rudimentary browsers evolved into broadband and mobile networks, and then search and e-commerce brought all the world’s knowledge and salable goods to the fingertips of billions of people. tip.

• Legal and regulatory clarity. Around the world, emerging stablecoin regulations are setting robust compliance standards to protect consumers and pave the way for broader institutional integration, consistent with Circle’s approach to business. There are strong indications that the United States will soon follow suit and play a major role in harmonizing these rules globally. This trend toward regulatory clarity will give households, businesses, and financial institutions more confidence in USDC.

• Scalability of blockchain networks. At the same time, blockchain infrastructure is rapidly improving, becoming faster, more secure, and more flexible. Developers are simplifying the user experience and pushing complexity to the background so that the technology "just works." Blockchains that have solved major scaling problems can now enable USDC payments globally at a cost of just pennies.

• Excellent user experience. The number of connections between USDC and traditional finance is exploding. Circle's expanding global banking network adds direct access to USDC to many financial centers around the world. Increasing the number of collaborations can unlock more traditional payment use cases, including global payroll payments, supplier payments, cross-border remittances, merchant payments, and more.

Based on the above factors, along with the open network and ultra-high-speed throughput of the Value Internet, the Circle stablecoin network can achieve near-instant global value distribution. It's like storing and moving videos for example: in 2002, transferring video files was a pain in the ass. Twenty years later, people watch more than 1 billion hours of video every day.

The growth of the USDC economy reflects a larger trend of financial openness, a future driven by technological advancements and the popularity of APIs. In this future, instant, low-cost payments become people’s expectations. Recent research confirms this, with 65% of payments industry executives recognizing the need to expand instant payments infrastructure. However, the development of traditional payment is relatively lagging behind. USDC is expected to help the rapidly evolving payments landscape realize its full potential, especially in emerging markets that are rapidly moving from cash to non-cash payments.

Circle's Internet scale, enterprise-grade quality, and regulatory compliance are more than just a smart business strategy, they're necessary requirements to become a thriving platform. Over a decade ago, Circle set out to build a company that leverages the best attributes of blockchain—high speed, low cost, inclusive reach, and programmability—to leverage the Internet’s infrastructure at a fundamental level to recreate the global exchange of value. As this report demonstrates, Circle is delivering on its mission to advance global economic prosperity through frictionless exchange of value.

Circle is more optimistic than ever about the future—not just for Circle, but for everyone in the entire USDC ecosystem. Jeremy Allaire, Circle Co-founder & CEO

2. About Circle and USDC

2.1 Circle Stablecoin Network

Global interest in USDC is growing from the bottom up, and more and more companies and individuals realize that stablecoins and blockchain networks can solve long-term problems in global payments. These problems stem primarily from the legacy payment rails that today’s commerce still relies on. SWIFT and ACH - just two of the many rails that make up today's fragmented global payments landscape - were established in 1977 and 1972 respectively. More recent developments, such as the Eurozone's SEPA and national instant payment systems in several major markets, still lack global interoperability and economies of scale.

These shortcomings result in high transaction costs, delays, and other barriers, while exacerbating financial inclusion issues for those without access to the global banking system. Overall, these frictions impose a considerable tax burden on global business activity. We urgently need a new standard for global financial flows that is easily connected, safe, secure and open to everyone, which can solve these pain points and unlock huge opportunities. This vision is becoming a reality in the form of the Circle stablecoin network.

Circle works hand in hand with the world's leading banks, payment service providers and other institutions to connect all participants in a comprehensive, Internet-based settlement system through the stablecoin network with USDC, the world's largest regulated stablecoin, as its core. USDC can use the innovations of the blockchain network to compensate for and strengthen the global banking and financial system. Since its launch in 2018, Circle has enabled more than $850 billion in two-way flows between fiat currencies and supported blockchains. This stablecoin network enables banks, payment providers, businesses and consumers to utilize USDC for real-time global settlement with extremely low transaction costs and global accessibility.

In the half century since the advent of SWIFT and ACH, global communications have undergone a radical transformation, allowing people to connect with each other instantly around the world. Billions of people can watch Hollywood movies on hand-held mobile phones while riding the subway, have instant access to all human knowledge at almost zero cost, and be able to buy or sell almost any product from every corner of the world. Circle is building a value interconnection network based on stablecoins to provide network upgrades for global finance . As this report lays out, this transformation is underway, with Circle anticipating accelerated progress in 2025 and beyond.

2.2 USDC is both a currency and a platform

USDC is a digital dollar capable of being transmitted across multiple blockchain networks, offering significant advantages in cost, speed and coverage compared to traditional forms of money. USDC can embody the three basic functions of currency: it serves as a digital store of value (A Digital Store of Value), a unit of account (Unit of Account), and a medium of exchange (Medium of Exchange).

USDC The digital dollar is a tokenized version of fiat currency that is loaded onto the internet, allowing individuals and businesses to move, spend, save, and store value with the same efficiency and scale that we transfer internet data today. Global research shows that the cost of sending $200 using cross-border money transfers can be more than 6% of the amount sent (and growing), and these payments are also becoming slower. USDC enables near-instant transfers of U.S. dollars at a cost of less than a penny.

At the same time, USDC is an ideal digital currency infrastructure that can be used globally as a value store, to make payments (especially cross-border payments), and to promote digital asset market activities. USDC not only makes money move faster, better, and cheaper, it also unlocks new financial opportunities and applications.

As a bridge between traditional finance and blockchain, USDC needs to be tightly integrated with the banking system at all times. Circle works with leading banks, including several Global Systemically Important Banks (G-SIBs), to ensure USDC is convertible to U.S. dollars at a 1:1 ratio. These partner banks are strategically located around the world, making USDC cost-effective and accessible in markets with high demand.

This year, Circle began offering USDC in some countries through national payment systems as well as local currencies. Circle expects this native availability to become more widespread as it pursues more bank integrations. USDC is also accepted as a primary settlement currency by the world's leading card organizations and payment networks, which supports its use as a medium of exchange.

USDC is so powerful because it is both a digital dollar and a platform. The platform is removing technical barriers to moving funds and building new applications on the blockchain, both of which have previously hindered the speed of adoption. Over time, this platform will push the complexity of blockchain to the background, making it easier to use and build USDC, paving the way for mass adoption.

2.3 Circle’s compliance principles for managing USDC

Circle's basic principles for managing USDC: 1) Security: USDC is a tokenized U.S. dollar, not a tokenized bank deposit; 2) Transparency: Full disclosure of reserve assets and guaranteed by a third party; 3) Liquidity: It can be converted into U.S. dollars at a 1:1 ratio around the world around the clock; 4) Robustness: comprehensive risk management and world-class financial partners.

Circle is the sole issuer of USDC. As an issuer, Circle has established robust prudent risk management and transparency standards around its USDC reserves to establish the highest level of confidence in its 1:1 redeemability. USDC is fully reserved at all times by cash and equivalents deposited within the regulated financial system, approximately 90% of which are short-term U.S. Treasury securities and overnight repurchase agreements (Repos). The Treasuries are managed by BlackRock through the Circle Reserve Fund, which is regulated by the U.S. Securities and Exchange Commission (SEC), and the fund discloses its holdings daily. The remainder (10%) of USDC reserves is held in cash to provide immediate liquidity, with approximately 90% of the cash also held in G-SIBs.

Each week, Circle also discloses reserve holdings, minting and redemption information on circle.com’s transparency page. Each month, USDC and EURC reserve reports are released, and independent auditor Deloitte issues an opinion on these reports. Circle is regulated in the U.S. and other global jurisdictions, including maintaining customer identification (KYC), anti-money laundering (AML), sanctions, privacy, regulatory reporting and other risk management programs, while conducting blockchain monitoring and screening to Protect against child exploitation, sanctioned addresses, terrorist financing, and other illegal activities.

USDC also enjoys this legal and regulatory clarity in Europe, where Circle has become the first major global stablecoin issuer to comply with MiCA rules -the EURC euro stablecoin, issued entirely by Circle's regulated e-money institution in France and The reserve is in compliance with the regulatory framework of the European Union’s Market Regulation of Crypto-Assets Act (MiCA). In early October 2024, EURC became the largest euro-backed stablecoin in total circulation, with weekly transfer volumes exceeding $1 billion. EURC is available on multiple blockchains and is widely supported by large digital asset service providers in the EU. The growth of non-USD stablecoins brings new possibilities for blockchain-based finance, including foreign exchange (FX), local capital markets, and tokenization efforts, as well as regional cross-border and remittance payment channels.

3. Dollars on the Internet

Circle’s mission is to increase global economic prosperity through frictionless exchange of value. Circle firmly believes that the speed, cost and accessibility advantages of blockchain-based commerce can materially benefit billions of people around the world.

USDC is already helping to accelerate the evolution of traditional financial services in the developed world, but its most impact may be in its ability to help the 1.4 billion unbanked people. Many of these people live far away from financial infrastructure such as mobile phones, the internet and fintech, including brick-and-mortar banks. USDC is a way to put low-cost, transparent digital dollars directly into their hands.

3.1 Speed ​​of value transfer on the Internet

All this benefits from the inherent openness of USDC. USDC is built on an open blockchain network, allowing currency, payment, lending and other programmable functions to be directly integrated into the architecture of the Internet. As of 2024, USDC natively supports 16 blockchains, including Ethereum, the world's largest smart contract blockchain, and many "third generations" designed from the ground up for near-instant, near-free payment settlement. Blockchain.

USDC will drive money transfers into the next paradigm. In the past, it took more than two months for information to cross the Atlantic Ocean. Faster ships, telegraph, fax systems, and the Internet have reduced data delays to milliseconds. However, the transfer of funds has been slow. Despite improvements brought by ACH, SWIFT, and fintech, before the advent of blockchain, the movement of funds still lagged behind non-financial data. Blockchain brings the speed and scale of the Internet to the transfer of value.

3.2 USDC user base gradually expands

Across the world, the number of people using USDC continues to rise steadily. The number of wallets holding at least $10 USDC has nearly doubled since the start of 2023 to 3.9 million addresses, with most of the growth occurring in 2024. This is part of a larger, longer-term shift in financial services that has been going on for at least two decades. The introduction of mobile devices and smartphones in the early to mid-2000s, along with regulations such as the EU's Payment Services Directive (PSD), paved the way for technology companies to begin offering financial services.

All in all, the digitization of finance is driving significant change, with digital wallets (including those linked to payment cards) becoming a favored payment method, and business payments being rapidly digitized.

Over the past year, Circle has formed partnerships with a number of businesses that can now distribute USDC directly to millions of their own users. While these partnerships are still in their infancy, Circle expects that, with its large user base, these partnerships will help drive the next phase of USDC’s growth by expanding access to USD.

3.3 Global enterprises’ interest in Circle surges

Commercial interest in Circle is growing, from powerful financial institutions and enterprise technology companies to pioneering payments companies. Different businesses around the world are leveraging the platform provided by Circle to better serve their customers, operate more efficiently, and create new connections. USDC is borderless, always online, and enables near-instant payments, powering the next wave of global commerce.

4. Brand-new Internet financial system - Value Internet

The growth of the USDC user base is rising simultaneously with the new financial system of the Internet, creating new ways of value exchange, enhancing and expanding the activities of the traditional financial system. Over time, Circle expects that as more people, businesses, and institutions coalesce around the unparalleled utility provided by the open Internet protocol, more traditional financial activities will migrate to this new Internet financial system— —Internet of Value. This trend has spanned from information, to communications, and now to currency itself – stablecoins.

4.1 Development trajectory of the Internet

To understand this coming shift and the role Circle hopes to play, it's helpful to look back at the early days of the Internet. The emergence of the commercial Internet in the 1990s, and the advancement of "write" access in the early 2000s, gave rise to new platform business models that empowered builders and directly connected users to each other. These platform businesses still dominate the Internet today, covering social media, shared travel, e-commerce, application markets, etc. They create utility by amassing significant network effects and global scale, enabling deep, sustained engagement with a loyal user base.

The rise of digital currencies like USDC stems from the collision of currency with Moore's Law and Metcalfe's Law. In the real world and on the Internet, the U.S. dollar is a currency with network effects. Circle is building a technology platform based on USDC, based on the strength and widespread use of the US dollar today, and taking full advantage of the scale, speed and cost advantages of the Internet to achieve similar network effects and practicality for financial services.

4.2 The value layer of the Internet

To this end, Circle designed USDC using open source standards and smart contract blockchain so that any developer can easily obtain the tools they need to build global, scalable digital dollar applications. This programmability and composability is a game changer: it gives USDC greater functionality and new application potential than the traditional dollar.

Circle provides developers with a range of additional services designed to make USDC easier to use for their businesses and end customers. This includes several types of USDC-backed wallets that businesses can embed directly into existing customer interfaces with just a few lines of code, as well as a growing library of smart contract templates that eliminate the need to create applications on the blockchain most of the complexity. Other services focus on simplifying the payment of network transaction fees, which are often denominated in the blockchain’s native token, which adds extra steps and barriers to use. Circle is now enabling the use of USDC to pay these fees.

At the same time, as a regulated financial services business, Circle prioritizes compliance. Developers and businesses building on the Circle platform have access to tools that help ensure compliance with anti-money laundering (AML) standards through real-time transaction screening, ongoing monitoring, and compliance with travel rule obligations. Circle’s new compliance engine provides developers with resources to help meet their compliance needs, exporting safe, robust, and responsible tools to the broader digital asset ecosystem.

Over the past two decades, leading cloud service providers have solved difficult problems such as on-demand data storage, allowing today's Internet companies to focus less on the back end and devote more resources and attention to innovation and customer experience. Likewise, Circle provides a comprehensive toolkit to facilitate the development of "Web3".

Web3 embeds value directly into the architecture of the Internet, enabling users to become owners of their data and other technology assets, including currency, and facilitating the exchange of value. Additionally, Web3 can become another new foundational layer for the Internet, providing new avenues for corporate governance, value creation, and stakeholder engagement.

Just as 94% of Fortune 500 companies today rely on the public cloud for business operations, Circle expects that in the coming years, more and more major companies will turn to this Internet of Value. According to some studies, more than half of Fortune 500 executives surveyed said their companies are already building on blockchain. In addition to making it easier to launch individual applications, Circle also provides enhancements that can transform USDC into a link that connects a wide range of services across the blockchain ecosystem. The Cross-Chain Transfer Protocol (CCTP) launched in 2023 is one such example.

One of the reasons for the global popularity of email is that its reach is global, and SMTP allows users to communicate seamlessly regardless of which service they use. Likewise, CCTP facilitates USDC’s interoperability among supported blockchain networks. By removing the long-term friction and risk of transferring value between blockchains—because blockchains themselves cannot communicate with each other—CCTP transforms a broad segment of the growing blockchain ecosystem into a single interconnected network, USDC Can move easily within this network. Although early in its life cycle, CCTP has become the primary method for transferring USDC from one blockchain to another. Since its inception, CCTP has processed over $20 billion in USDC transfers.

4.3 Cultivate the developer ecosystem

The flow of money touches nearly every aspect of local and global business. USDC and Circle’s technology solutions are built on open protocols and programmability, giving any software developer the tools they are familiar with – including APIs in standard programming languages ​​– to create powerful applications that upgrade traditional financial systems. .

Developers are already taking advantage of this new opportunity to build an Internet of Value. Crucially, this process occurs both from the bottom up and from the top down. Entrepreneurs are using USDC and Circle's platforms to create new financial application categories. Enterprises, meanwhile, are leveraging this same infrastructure to integrate the efficiencies of USDC and blockchain into their existing operations. Every day, Circle invests in the growth of the blockchain ecosystem and developer community.

Globally, Circle hosts workshops and provides other resources to make it easier for developers to get hands-on and access the power of digital dollars. Circle helps unlock the USDC platform for developers who need to integrate enterprise-grade software into trusted applications built for the digital dollar use cases highlighted in this report.

Much of the activity by USDC developers to date has been focused on deepening the connection between the blockchain ecosystem and traditional financial rails. These connections act as on-ramps, making USDC more influential to existing payment use cases. These activities support and enhance the development of a more robust on-chain economy in which a full range of financial activities connecting buyers, sellers and merchants can occur natively on the blockchain.

The growing intersection of blockchain and AI is another area of ​​growing interest within the USDC developer community. Although still in its early stages, there are already signs that autonomous payments using USDC may begin to open up new business models for Internet goods and create more convenient ways for people to consume. The Circle platform is ready to help developers build this future.

This on-chain economy is emerging on multiple blockchains, further emphasizing the need for neutral, interoperable infrastructure—including USDC and CCTP—to remove the friction of doing business between these networks. In fact, the top six blockchains by builder interest all feature native USDC availability and full CCTP integration, highlighting Circle’s central position in this growing ecosystem of builders and creators.

5. USDC Real-life Use Cases

USDC has as many uses as fiat dollars, if not more potential. Today, most USDC activities are geared toward the following four categories:

5.1 Global USD acquisition

Dollars are in high demand outside the United States, both for business and personal use. The U.S. dollar accounts for more than 90% of cross-border trade in Latin America, 74% in the Asia-Pacific region, and 79% in other regions outside Europe. According to the Federal Reserve, more than $1 trillion in U.S. banknotes — and more than 60% of all $100 notes — are held outside the United States.

The use of USDC outside the United States is largely due to these factors, as well as its greater accessibility compared to traditional bank dollars. Throughout the year, Circle has partnered with established fintechs, neobanks, and other distributors who are now able to put USDC directly into the hands of customers around the world.

5.1.1 Nubank - Latin American emerging bank

Nubank is the world's largest digital banking platform outside Asia, serving 105 million customers in Brazil, Mexico and Colombia. The company has been leading industry transformation by leveraging data and proprietary technology to develop innovative financial products and services. Guided by its mission to "fight complexity and empower people," Nubank meets its customers' complete financial journey, promoting financial access and growth through responsible lending and transparency. The company is powered by an efficient and scalable business model that combines low-cost services with growing returns. Nubank's impact has been recognized by multiple awards, including Time Magazine's 100 Most Innovative Companies, Fast Company's Most Innovative Companies and Forbes' World's Best Banks.

In May 2024, Circle announced its launch in Brazil, Nubank's home market. The launch includes a partnership with Nubank, where the two companies will work together to create digital asset products that will provide Nubank users with near-instant, low-cost, 24/7 access to USDC. In addition to using USD as a store of value, Nubank users can transfer USDC to other wallets and will increasingly use it in their daily financial activities. At Nubank, 30% of crypto users hold USDC assets, and 50% of new users use USDC as a stepping stone to enter the crypto world. In 2024, the number of users holding USDC increased tenfold.

As Nubank continues to expand its presence in Latin America and beyond, USDC will be a cornerstone of our strategy to provide innovative financial solutions to our customers. Its stability, global reach and commitment to regulatory compliance make it an ideal partner as we build a more inclusive and accessible financial future. Thomaz Fortes, Head of Crypto

5.1.2 Lemon - Fiat currency and digital currency wallet

Lemon is a Latin American company that has become a leader in the retail digital currency market. Lemon has direct operations in Argentina, Peru and Brazil, and also works with partners to reach users in Mexico, Colombia, Uruguay and Ecuador. Their main product is a virtual wallet that combines traditional finance with digital currencies. Seamless exchanges between local currencies and cryptocurrencies, including USDC, are further enhanced by integrating DeFi protocols to earn additional weekly crypto income.

The innovative Visa Lemon card is available to users in Argentina, offering global spending and earning Bitcoin cash back on every purchase. Lemon and Visa have further deepened their partnership and are developing plans to expand the Lemon card throughout the region. Additionally, Peruvians can interact with local payment systems using fiat currencies or cryptocurrencies and send money via QR codes. In Lemon, users hold a total of US$137 million in USDC, and the new number of USDC users increased by 21%.

With over 3 million users in the region, the amount of USDC held by Lemon has grown by 61% in the past 12 months. This reflects the growing demand for a digital dollar. This growth highlights the importance of stablecoins and our ability to provide tailor-made solutions that enable individuals in Latin America to manage their money freely and without barriers. Maximiliano Raimondi, CFO

5.2 Digital asset market

In 2024, the digital asset market will gain momentum and mainstream adoption will grow significantly. As more and more jurisdictions around the world enact clear regulations to govern market conduct, more and more digital asset exchanges are becoming compliant entry points for new users to obtain financial products with enhanced security measures and powerful consumer protection.

USDC plays an increasingly important role in these markets. As the most widely used regulated stablecoin, USDC removes risk for exchanges and their customers and serves as a liquid U.S. dollar base layer for trading, lending, storing value, and other activities.

Based on the growing public interest, the amount of USDC held by global centralized exchanges will grow steadily in 2024. Increased institutional support for USDC trading and the launch of new products linked to USDC continue to enhance the liquidity of USDC with Bitcoin, Ethereum and other digital currency spot and leveraged product transactions.

USDC also plays an important role in decentralized finance (DeFi), where institutions tend to place a high value on security and transparency. DeFi rebounded throughout 2024 as digital asset prices rose, with total value locked (TVL) exceeding $126 billion as of November 30, 2024. USDC builds on DeFi's historically strong usage, accounting for 69% of stablecoin trading volume during the same time period.

As more global jurisdictions enact regulations for digital asset markets, demand for regulated stablecoins will grow. This is already evident in Europe, which adopted the comprehensive MiCA framework in summer 2024. Traders in Europe are increasingly choosing regulated stablecoins, including USDC and EURC, which are MiCA compliant from day one. Throughout 2024, several exchanges in the region announced the delisting of non-compliant stablecoins in advance of the December 31, 2024, full compliance deadline.

Despite the lack of market structure regulation, mainstream adoption is also accelerating in the United States, driven in large part by the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs), enabling asset managers to offer clients and provide customers with access to the largest digital assets by market capitalization. A few months later, the SEC approved a spot ETF for Ethereum. Collectively, these ETFs provide mainstream investors with a highly regulated, transparent way to invest in nearly $2.5 trillion in digital assets as of November 30, 2024. To date, at least 11 U.S. institutions have launched ETFs linked to Bitcoin or Ethereum, the two largest digital assets by market capitalization.

While Circle is not directly used in these ETFs, its long-standing regulatory-first stance means USDC is benefiting from broader digital asset market trends toward greater regulatory clarity and integration into the global financial system. Major traditional investment platforms in the United States and around the world continue to expand their digital product offerings, with USDC serving clients by serving as a bridge between traditional and digital asset markets.

5.2.1 Coinbase – the world’s leading compliant digital asset exchange

Coinbase provides a trusted platform that enables individuals and institutions to easily participate in digital assets, including trading, staking, custody, spending and fast, free global transfers. USDC plays an important role in Coinbase, accounting for a large portion of trading liquidity and collateral. In 2023, Coinbase launched Base, an Ethereum layer 2 blockchain that enables USDC transactions in less than a second and at a cost of less than a penny. Base has seen significant growth in adoption this year, and USDC – as the leading stablecoin on Base – is a key part of this surge. In the past few years, a total of approximately 562 billion USDC has come to Base. Coinbase also offers a range of other services that make it easy for more people to access and start using USDC.

Stablecoins are changing the global financial landscape by promoting greater openness and inclusion. The continued expansion of USDC circulation will enhance global economic freedom and set a new standard for an industry based on trust and transparency. We are excited to further drive innovation by advancing the development of the USDC ecosystem, its circulation and global adoption. Shan Aggarwal, VP of Corporate and Business Development

5.2.3 Chipper Cash - Providing convenient financial services to Africa

With over 6 million registered users, Chipper Cash is one of the largest fintech companies in Africa. The company enables Africans to send money easily, avoiding the hassle and fees typically encountered when using other payment systems. Chipper uses USDC to achieve efficient fund management on a global scale, optimizing and reducing cross-border settlement costs.

Chipper offers a variety of products, including USD-denominated savings (for local workers who want to convert foreign wages to USDC), a virtual Visa card that can be funded and used locally or globally, investing in fractional shares of foreign stocks, remittances, and more. Chipper holds 49 operating licenses worldwide, including a recently issued broker-dealer license from the Ghana Securities and Exchange Commission. Circle and Chipper are proud partners providing trusted and accessible financial services across Africa and beyond.

USDC is the key settlement layer for the Chipper Cash technology platform and its growing list of partners, enabling seamless 24/7 USD transfers and promoting broad interoperability. By using USDC on a shared ledger, we have greatly improved operational efficiency - real-time reconciliation, transparent fund tracking and reduced transaction disputes, streamlining our internal liquidity processes. This efficiency is critical to our growth strategy and commitment to delivering strong and reliable financial services to users in Africa and beyond. Maijid Moujaled, Co-founder & CEO

5.2.2 Bullish - Innovative Digital Asset Exchange

Bullish is focused on developing products and services for the institutional digital asset space, reinventing traditional exchanges to benefit asset holders, empower traders, and increase market transparency. Backed by the Group's strong capital base, Bullish's centralized exchange combines a high-performance central limit order book (CLOB) with proprietary automated market-making technology to deliver deep liquidity and tight spreads - all while Done within a compliant and regulated framework. Launched in November 2021, the exchange offers services in more than 50 select jurisdictions across Asia Pacific, Europe, Africa and Latin America. Bullish is a fully reserve exchange that prioritizes compliance and protecting customer assets through strong security measures and regulatory oversight.

Bullish Exchange is operated by Bullish (GI) Limited and regulated by the Gibraltar Financial Services Commission. Bullish launched USDC in 2021 and currently lists more than 50 USDC trading pairs in the spot and derivatives markets. Bullish's daily USDC trading volume reaches US$1.3 billion, accounting for 83% of the entire exchange's trading volume.

The introduction of strong regulatory regimes across the globe is opening up the cryptocurrency market to existing diverse financial services players. USDC not only provides an efficient and secure medium of exchange, it also provides a way for institutions to confidently participate in digital assets, while serving as an important mechanism for recovering risk capital. Chris Tyrer, Head of Institutional

5.2.3 dYdX - Top Decentralized Exchange

dYdX is one of the largest and most successful protocols in the decentralized finance (DeFi) space. Founded in 2017 by Antonio Juliano, it was initially launched on the Ethereum mainnet and subsequently built on Ethereum Layer 2 Starkware in 2020. Layer extension solution.

Recognizing the need for lower fees and faster speeds, dYdX began exploring alternative infrastructure and relaunched their services in 2023 on Cosmos, a highly modular ecosystem that enables services like dYdX to be built and operated own blockchain.

Every trade made on dYdX is settled almost instantly in USDC. Circle’s Cross-Chain Transfer Protocol (CCTP) provides users with an easy way to bring native USDC liquidity from other blockchain ecosystems to Cosmos. CCTP is a permissionless on-chain utility that facilitates secure transfers of USDC between blockchains through native burning and minting. CCTP allows users to easily connect wallets and deposit USDC from Ethereum and other supported networks. Read more about Circle, dYdX and Cosmos.

Circle Thanks to the Circle team, dYdX Chain has processed over $10 billion in transaction volume since deployment. This is a huge feat and would not have been possible without the innovation of Cosmos native USDC and CCTP. At dYdX, we are grateful for Circle's continued innovation and their commitment to ensuring user safety and reliability. Antonio Juliano, Founder

5.3 Payment

Blockchain networks can provide a significant upgrade to old, fragmented traditional payment rails by replacing multiple intermediaries and siled databases with streamlined, always-on, interoperable technologies that can transfer value to anyone with the ability to do so. Internet connected people.

USDC is driving the development of global payments, from merchant acquiring to remittances and B2B payments. USDC is well suited to the competition to reduce costs and increase the $150 trillion in cross-border transaction flows. Take business payments in particular, which have shifted to digital alternatives and this growth is expected to continue in the coming years. USDC can help realize the full benefits of digital payments because it occurs via an open, shared blockchain ledger without the need for intermediaries.

This year, Circle has made major moves to position USDC to capitalize on this trend in major global markets where demand for the digital dollar is high. Businesses in the United States, Brazil, Mexico, European Economic Area, Singapore and Hong Kong can now take advantage of Circle's banking partnerships to pay other businesses in these markets in USDC. Recipients with accounts at Circle's banking partners can easily convert these funds into local currency in just minutes.

These markets are among the most dynamic global trade corridors in the world. For example, bilateral trade between the United States and Mexico alone exceeds $800 billion annually. In Brazil, 95% of the country's $640 billion in annual foreign merchandise trade is conducted in U.S. dollars. Circle anticipates that additional bank partnerships will continue to enhance USDC’s global liquidity and payments utility, paving the way for broader use among merchants, vendors, trade, remittances, payroll, intercompany and other payment types .

5.3.1 Worldpay - an innovative global payment service provider

Worldpay provides payments, collections and management services to businesses of all sizes. They are a global leader in financial technology with unique capabilities to support the entire business. Whether online, in-store or on mobile, Worldpay is at the heart of a superior commerce experience in 146 countries and 135 currencies. They help customers become more efficient, safer and more successful.

In 2022, Worldpay became the first global merchant acquirer to offer direct USDC settlement, enabling merchants around the world to tap into growing stablecoin payment volumes and provide new payment methods for customers of both crypto-native and traditional businesses. Worldpay's adoption of USDC also enables businesses to develop financial strategies that suit the preferred currency in which they do business. As a result, Worldpay customers are no longer beholden to payment service providers that only offer fiat currency ecosystems, but can instead take advantage of innovative crypto payment methods to directly receive, hold and transfer stablecoins in a fast and efficient manner.

Worldpay is well-positioned to capitalize on rising retail interest this year as digital asset markets rebound. In addition to offering card-to-crypto purchasing and crypto-to-card withdrawal capabilities for several major exchanges, they also offer simplified fund management through USDC settlement. Worldpay customers can receive USDC from their clients instead of fiat currency and have these funds settled on weekends (outside of traditional banking hours) to help optimize working capital.

Partnering with Circle enables Worldpay to bring new innovative, scalable digital payment solutions to our merchants. Our partnership increases transaction efficiency while expanding customer access to secure on-chain transactions. USDC settlement enables our merchants to position themselves at the forefront of digital finance, where they can take advantage of the benefits of fast, efficient settlement. Looking ahead to 2025, Worldpay is excited about the opportunity to partner with Circle to continue to grow the ecosystem so that more participants can take advantage of what stablecoins have to offer. Nabil Manji, SVP, Head of FinTech Growth & Financial Partnerships

5.3.2 Mastercard - Global Card Organization Network

Mastercard is working with businesses and governments around the world in areas such as payments to improve the lives of the billions of people it serves. For more than 60 years, Mastercard has pioneered technology that makes payments simpler, smarter and more secure. Mastercard's global network drives progress in the payments ecosystem by leveraging technology to build stronger connections and bring more people into the digital economy.

Mastercard's partnership with Circle is now in its fifth year. In 2021, Mastercard announced that it would make it easier for issuers and their crypto card partners to use USDC to settle payments resulting from transactions on the Mastercard network. Later, the same functionality was extended to support acquirers wishing to pay merchants in USDC. Millions of dollars are currently being settled using this solution, available to both issuers and acquirers. In addition, Mastercard last year launched a card product structure that allows USDC held in self-hosted wallets to be used at more than 100 million locations that accept Mastercard.

At Mastercard, we strive to meet the needs of our consumers and customers. Clients and co-brands operating in the digital asset space prefer to deal with stablecoins, including USDC, given their business models, and we want them to be able to choose their settlement mechanism with our network. Our partnership with Circle will continue to grow to support our mission of making payments simpler, smarter and more secure. Izzy Iliev-Wollitzer, SVP, Blockchain and Digital Assets. At MetaMask, we are very excited to partner with Mastercard and Circle. We set out to create a solution that would allow users to pay directly from their MetaMask account anywhere Mastercard is accepted, and in collaboration with these valuable partners, we achieved this last summer. While this is an important step towards better, faster payments services, we believe this is just the first step in a new era of financial inclusion – and we look forward to continuing to build it together. Daniel Lynch, Card Strategy Lead

5.3.3 Zodia Markets – Promote cross-border corporate payments with Standard Chartered

Zodia Markets is an institutional-first digital asset brokerage offering a wide range of services to clients around the world, including OTC and on-chain FX. At Zodia Markets, USD 4 billion in USDC was raised throughout the year, and the average cross-border payment amount per order was USD 3.5 million.

Founded by SC Ventures, the innovation arm of Standard Chartered Bank, and OSL Group, Asia's leading digital asset company, Zodia Markets supports over 50 digital assets and over 20 fiat currencies. The company's institutional focus and unique relationship with Standard Chartered puts it at the heart of USDC's enterprise cross-border payments use cases, particularly in emerging markets. Customers include multinational commodities companies and other businesses seeking to accelerate growth through faster and cheaper ways to move dollars across borders.

Standard Chartered is a well-capitalized global bank and the major shareholder of Zodia Markets, playing a key role in the integration of digital assets and traditional finance. With a long history and a diverse portfolio of business lines, Standard Chartered understands how to promote sustainable growth for businesses and individuals around the world. In 2023, Standard Chartered became one of the banks to hold some cash reserves backing USDC. Standard Chartered is also making it easier for people to obtain USDC in high-demand markets by promoting local minting in Singapore. Circle’s partnership with Standard Chartered means Zodia Markets can mint and burn USDC almost instantly, giving customers the opportunity to enter and exit global payment flows in minutes.

5.3.4 MoneyGram – the world’s leading financial technology company

MoneyGram is one of the world's leading financial technology companies with an 80-year history helping people and businesses around the world send money faster and more efficiently. Today, they serve more than 200 countries and territories, reaching more than 150 million consumers who can choose how to send money—online, on their acclaimed mobile app, or at one of more than 440,000 locations.

MoneyGram uses USDC on the Stellar blockchain to facilitate internet-scale movement of USD, while being able to cash out in 180 countries and convert to USDC in over 30 countries. In 2024, MoneyGram launched MoneyGram® Wallet, a non-custodial digital wallet that makes peer-to-peer money transfers easier using USDC. Based on their global reach and decades of expertise, their approach to money transfer is global, not regional. MoneyGram already connects the United States to Brazil and Mexico, with plans to enable more payment lanes under construction.

Circle At MoneyGram, we see huge potential in USDC’s partnership with Circle to increase the speed, transparency and accessibility of cross-border transactions. Our goal is to empower communities around the world through greater financial inclusion. The open blockchain network represents a critical step in the evolution of global currency flows, allowing us to meet the growing expectations of our digitally savvy customers. By leveraging blockchain technology and stablecoins such as USDC, MoneyGram is at the forefront of innovation, connecting traditional and digital financial ecosystems and enabling interoperability between digital assets and local currencies. Jon Lira MoneyGram Access, Head of Partnerships

5.3.5 Stripe – American payment giant

Stripe is a technology company building financial infrastructure for the internet. Businesses of all sizes, from new startups to public companies, use Stripe's software to accept payments and manage their business online. In 2023, Stripe's business customers will handle $1 trillion in total payments. Stripe is one of the most innovative companies in the world and an early adopter of crypto payments. In 2022, they started offering USDC as a payment option for the platform, and in 2024, they enabled merchants to accept stablecoin payments using USDC on the Ethereum, Solana, and Polygon blockchains.

5.4 Humanitarian assistance

In some of the most remote and difficult-to-reach areas of the world, humanitarian organizations often transport cash across borders to facilitate cross-border payments.

This method of distributing aid is unreliable, costly, inefficient and susceptible to corruption. Currently, 1.4 billion people around the world live in areas not covered by banking services. It is estimated that 130 million people will fall into extreme poverty due to global warming.

USDC is starting to change that, providing a more effective and safer alternative to some of the world’s leading humanitarian aid agencies. USDC is able to support 180 countries and has negligible transaction costs.

USDC can bridge this seemingly insurmountable gap by providing a fast, transparent, and efficient way to transfer value around the world directly over the internet with just a mobile device and a digital wallet. It allows aid organizations to deliver support to those who need it most with unparalleled speed, lower cost and a high degree of auditability and trust -the cornerstones of humanitarian work.

Entrepreneurs around the world are also turning to USDC to build the next generation of humanitarian aid services. Circle fosters this entrepreneurial community through Unlocking Impact, a series of pitch competitions that bring together the humanitarian, corporate and technology sectors to design new USDC use cases that address the United Nations’ Sustainable Development Goals (SDGs).

In the fall of 2024, Circle is hosting its fourth and fifth Unlocking Impact pitch competitions during the United Nations General Assembly and the annual meetings of the International Monetary Fund and World Bank. Winners include Kshetra and Decaf, startups using USDC to create payment and remittance services that drive financial inclusion.

5.4.1 The UN Refugee Agency——The United Nations Refugee Agency

Today, more than 120 million people around the world are forcibly displaced, a number close to the entire population of Japan. However, as persecution, conflict, violence and human rights violations increase, the prospects for those forcibly displaced become increasingly bleak. UNHCR leads international action to protect people forced to flee their homes due to conflict and persecution. UNHCR provides life-saving assistance such as shelter, food and water, helping to safeguard basic human rights and develop solutions to ensure people have a safe home where they can build a better future.

Distributing aid to displaced people is a serious challenge. They may not have access to banking services, especially in countries plagued by war and unrest. Local currencies can be unstable and difficult to use outside the issuing country, making them less valuable to people forced to cross borders in search of safety. The risk of cash being lost or stolen is high, which is another major problem for people without a home base. As part of the Humanitarian Cash Initiative, UNHCR and Circle launched a program in December 2022 to distribute borderless digital dollars in the form of USDC to a group of people displaced by the war in Ukraine. The money is transferred directly to the recipient’s digital wallet via the Stellar blockchain, which can be accessed almost instantly via the digital wallet on their own smartphone, with a fully integrated redemption solution that complies with regulatory requirements.

The solution’s success in Ukraine has motivated its further expansion and implementation in other regions. For example, in Argentina, the introduction of such a blockchain-based system could help safeguard the value of cash assistance against the country’s high inflation and currency devaluation, thereby significantly increasing the purchasing power and Influence. By leveraging blockchain technology and Circle-issued stablecoin USDC, the solution increases donor transparency and traceability to humanitarian aid recipients and stakeholders. The integration of digital wallets and direct access to the financial ecosystem makes assistance easily accessible, even for those without traditional bank accounts.

This approach increases the resilience of refugees by sustaining their livelihoods, promoting financial and digital inclusion, and enabling them to contribute across borders to the economies of host countries and beyond. Blockchain technology can transform humanitarian aid by enabling real-time, transparent and accountable aid distribution. There is strong optimism about the further use of blockchain and cryptocurrencies to support the most vulnerable, including those who have been forcibly displaced. Carmen Hett, Treasurer

5.4.2 Goodwall – closing the inequality gap

Goodwall was founded by brothers Taha and Omar Bawa, whose parents both worked for the United Nations. While traveling to refugee camps with their parents, they observed inequalities in opportunity and determined from an early age to close this gap. By 2030, 1 billion people are expected to enter the labor market, 90% of whom will come from developing economies. In response, the brothers founded Goodwall, a company that acts as a powerful social community, connecting this growing talent pool and helping them develop critical skills for future employment.

With more than 2 billion people, Gen Z is the largest generation in history, yet employers and brands struggle to engage with them authentically and at scale. Goodwall provides companies like Microsoft and Accenture, as well as governments and the United Nations, with a platform to attract, engage and build a pipeline of Gen Z talent and consumers, reaching more than 100 million young people in the past 12 months.

All user actions (for example, picking up bottles on the beach) are verified through geotagged photos and videos and then rewarded on the platform. Goodwall chose USDC for payments because of its efficiency, cost and reach, as well as the widespread demand for U.S. dollars in developing markets. In 2023, Bawa Brothers reached more than 90 million people in 170 countries. Nearly 3 million people have signed up to start improving their career skills and earn USDC through environmental impact actions.

Goodwall will partner with Arbitrum this fall to implement Circle's programmable wallet, which aims to provide banking services to the unbanked and connect young people around the world to the global digital economy. Goodwall expects to issue USDC payments to more than 50,000 beneficiaries through this program over the next year.

5.4.3 Ensuro - Leveraging the advantages of blockchain to support underserved markets

Ensuro is an innovative insurance provider using blockchain technology and smart contracts to revolutionize the insurance industry, making it more capital efficient and inclusive. Ensuro's mission is to extend insurance coverage to individuals and businesses that have traditionally been overlooked by large insurance companies due to profitability constraints. The company’s low fixed cost base benefits from blockchain efficiencies, allowing it to provide insurance to underserved markets. While other insurance companies have experimented with smart contracts, they still rely on traditional payment systems, which have proven too slow and costly.

By using USDC, Ensuro ensures policyholders receive claim payments within minutes, a transformative benefit, especially for those who are financially vulnerable. Ensuro currently underwrites 170,000 policies, covering small farmers in Kenya. Through cooperation with Circle, Ensuro's policy value can reach $50, covering a wider range of individuals and merchants.

6. Outlook on Policy and Supervision Trends

Last year was a groundbreaking year for legal and regulatory clarity on stablecoins. At this stage of market and policy development, so-called stablecoins need to be regulated as a way to bring this new form of digital currency into the realm of trusted financial services. Around the world, emerging stablecoin rules are effectively codifying the way Circle does business, setting clear requirements for trust, transparency, financial integrity and other areas.

Circle becomes the first stablecoin issuer to comply with Canada’s new listing rules “The proactive steps taken by Canadian securities regulators in establishing a regulatory framework for digital assets have strengthened the integrity of the digital asset market while ensuring USDC’s thriving ecosystem in Canada. Continuing Trust in the System” Dante Disparte, Chief Strategy Officer and Head of Global Policy Circle expands Middle East business by registering with ADGM December 2024, Circle has reached a key milestone in its strategic expansion into the Middle East and Africa, announcing its registration at Abu Dhabi Global Market (ADGM). The Middle East and Africa is a key frontier for advancing financial inclusion and efficiency, and registration in this technology-leading region will help drive innovation collaboration, financial inclusion and accessibility. Circle announces new global headquarters in the heart of Wall Street In September 2024, Circle unveiled plans to establish a new global corporate headquarters at the iconic One World Trade Center in Lower Manhattan. Set to open in early 2025, the headquarters will occupy the entire 87th floor of the building and will serve as a gathering place for partners, technology experts, public leaders, employees and other global stakeholders. "We are investing in New York. We are investing in America... We are honored to join New York's vibrant community of innovators, technology experts and financial leaders." Jeremy Allaire, co-founder, chairman and CEO of Circle becomes first A major global stablecoin issuer that complies with EU MiCA regulations announced in Paris on July 1, 2024 that Circle has obtained an Electronic Money Institution (EMI) license from the French financial regulator ACPR. The EMI license will enable Circle to issue USDC and EURC to the EU market in full compliance with MiCA requirements, serving more than 450 million residents and covering the world's third largest economy. Buoyed by this news, in early October 2024, EURC became the largest euro-backed stablecoin in terms of total circulation.

Under MiCA, fiat-backed stablecoins (or e-money tokens as they are called in Europe) are considered legal e-money, creating a level playing field for payment systems and e-money operators in the EU. Crucially, Circle’s collaboration with French and EU regulatory and policy stakeholders ensures the global fungibility of USDC and EURC for circulation in the EU, given the stablecoin’s novel universal portability. This not only provides EU market participants with a stablecoin denominated in local currency, but also ensures that USD-based activities in the EU are fully regulated.

Meanwhile, in the United States, long-awaited legislative developments in the House and Senate are now likely to pass under the incoming Trump administration, which has demonstrated a pro-growth, pro-innovation, and pro-crypto stance . This is not a policy effort that needs to be started from scratch in the United States, as the two parties have already laid out the framework for principled rules in the United States that apply not only to stablecoins but also to cryptocurrency market structures. Against this backdrop, President Trump has an opportunity to fulfill his campaign promise to establish U.S. leadership in cryptocurrency. By regulating stablecoins, the United States can help ensure that digital dollars become the reserve currency of the Internet, just as they are the reserve currency of the world.

Other major economies are expected to follow suit in 2025, including the UK. Under Prime Minister Starmer’s government, the UK may now have the political stability to fulfill its long-standing regulatory interest and research into digital asset markets. Relatedly, both the UK and US have embarked on the important work of developing national payments strategies, in which regulated stablecoins offer compelling use cases for always-on currencies as digital savings vehicles and for entrenched payments. Provides much-needed competition.

Likewise, Brazil is expected to bring stablecoins and digital assets within the regulatory ambit of its already impressive domestic payments environment, while Hong Kong, one of Asia’s most important financial centers, will develop principled rules for stablecoins. The rules are likely to build on Japan’s concept of regulatory reciprocity while solidifying Singapore’s long-term position as Asia’s fintech hub.

As more global financial centers provide much-needed platforms for stablecoin activity within their jurisdictions, banks, asset managers and regulators around the world are building critical bridges from the internet financial system to the real economy. Concerns about fierce competition are giving way to collaboration and clear pu