Circle targets trillions in USDC growth as Arc mainnet nears

Circle sees USDC's addressable market reaching trillions of dollars as its Arc blockchain mainnet nears a Sept. 16 launch.

Circle Internet Group (NYSE: CRCL) is targeting trillions of dollars in USDC growth, expanding beyond crypto trading into cross-border payments, capital markets and AI-agent transactions, Chief Executive Jeremy Allaire said during an earnings-related question-and-answer session.

"Stablecoins are already showing product-market fit as 24/7 digital dollars for settlement, collateral, working capital and payments in digital-asset markets," Allaire said, pointing to demand in emerging markets where households and businesses use USDC as an alternative to local banking.

USDC transactions rose 209 percent year over year in the first half of 2026, with overall volume up 101 percent, according to payment processor NOWPayments, which contrasted the growth with declining activity on Tether's USDT. Circle's EURC has surpassed €400 million in circulation, and its Circle Payments Network counts more than 175 financial-institution members. Roughly $300 billion in stablecoins are in circulation globally, Allaire said, calling the market early-stage.

The stakes extend beyond Circle's own growth. The CLARITY Act, a U.S. market-structure bill stalled in the Senate, would help traditional finance integrate stablecoins and other digital assets, potentially expanding USDC adoption. Allaire said he expects USDC demand to continue even if the bill does not pass in September, as stablecoin regulation advances globally.

Arc Mainnet Set for Sept. 16

Circle plans to launch Arc's public mainnet on Sept. 16 as a stablecoin-native blockchain where gas fees are paid in USDC. Allaire said the design could make blockchain infrastructure less visible to end users, letting developers absorb low transaction costs the way software companies absorb cloud-computing costs, rather than requiring users to hold separate crypto tokens. He compared Arc's potential scale to Amazon Web Services and described it as an "economic operating system."

Over the next five years, Allaire expects more corporate functions — ownership structures, contracts, treasury operations and cash-flow mechanisms — to move on-chain, with software and AI playing a larger role in managing on-chain organizations. Circle is developing tools for agent-to-agent commerce, including "Know Your Agent" capabilities, cryptographic identity attestations, agent registries and programmable spending policies, and recently published a paper titled "The Open Economy for Agents."

Reserve Income Remains the Engine

Asked whether USDC reserve income or transaction and infrastructure revenue will drive the business, Allaire said reserve income should remain a significant driver while Circle builds additional revenue streams around payments, blockchain infrastructure and partnerships. He said "99 point x percent" of payments over agentic payment protocols are currently made with USDC. Circle is also working with banks, fintech companies and cross-border payment providers integrating USDC into settlement, and pointed to Visa and Mastercard using stablecoins for cross-border settlement.

Circle shares rose 9.56 percent to $78.59 on Aug. 19 and added 2.37 percent in after-hours trading to $80.45, as Bitcoin rallied nearly 8 percent to $70,000. The stock carries a Moderate Buy consensus from 21 analysts, with an average price target of $98.61, according to MarketBeat. Circle has a market capitalization of about $19.95 billion, with shares ranging between $49.90 and $159.47 over the past 52 weeks.

The White House meeting between President Donald Trump and crypto executives this week, following the SEC's proposal to ease registration rules for some crypto companies, has raised expectations for regulatory clarity. Allaire said broader U.S. market-structure legislation matters for consumer protection and competitiveness but is not determinative of stablecoin demand, as adoption is largely occurring outside the United States. Circle's recent patent agreement with IBM could also reshape the stablecoin infrastructure race, the company said.

This article is for informational purposes only and does not constitute investment advice.