Circle CEO Predicts Stablecoin Adoption Surge as Retail Giants Explore US Dollar-Backed Coins

Circle’s CEO, Jeremy Allaire, has expressed his belief that the stablecoin industry is on the verge of widespread adoption, with major retailers and fintech innovators entering the space. Allaire compared the potential breakthrough of stablecoins to the launch of the iPhone in 2007, suggesting that stablecoins could soon achieve universal recognition and transform the payments landscape. He acknowledged that while the industry is not yet at that pivotal moment, it is rapidly approaching.

Allaire’s remarks were in response to a post from a16z Crypto partner Sam Broner, who argued that stablecoins foster competition and reduce the costs of building financial applications. Broner highlighted that stablecoins allow anyone to program money, leading to better prices, improved user experiences, and greater access. Allaire echoed this sentiment, calling stablecoins “the highest utility form of money ever created.”

This optimism coincides with reports that major US retail giants, such as Walmart and Amazon, are exploring their own US dollar-backed stablecoins. Additionally, e-commerce leader Shopify has confirmed plans to integrate Circle’s USDC stablecoin for payments by the end of 2025. Shopify’s CEO, Tobi Lutke, stated that stablecoins are a natural way to transact on the internet and that the company has collaborated with Coinbase to develop the necessary technology. A limited number of merchants will have access to this feature starting on June 13 as part of the early access rollout.

Daren Matsuoka, a data scientist at a16z, emphasized the transformative potential of stablecoins in onboarding the next billion crypto users. He highlighted the significant transaction volume processed by stablecoins over the past year, underscoring their growing importance in the financial ecosystem.

The surge in stablecoin adoption comes just days after Circle’s public debut on the New York Stock Exchange. The company’s shares jumped 167% on its first day of trading, indicating strong investor interest. However, rival stablecoin USDT’s issuer, Tether, has no plans to follow suit, with CEO Paolo Ardoino stating that Tether will remain a private company for the foreseeable future.

Allaire’s forecast of an “iPhone moment” for stablecoins is becoming more plausible as competition heats up and use cases multiply. The future of stablecoin issuance for many companies may depend on the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This bill seeks to establish clear rules around collateralization and enforce Anti-Money Laundering compliance, which could pave the way for greater institutional adoption in the world’s largest economy. The US Senate advanced the bill with a 68–30 vote, moving it toward a full floor vote before it heads to the House of Representatives.

Meanwhile, firms associated with major banks like JPMorgan, Bank of America, Citigroup, and Wells Fargo have reportedly explored launching a joint stablecoin initiative. This further indicates the growing interest and investment in stablecoins by major financial institutions, supporting Allaire’s optimistic outlook for the industry.