Circle CEO optimistic about 40% growth rate: How stablecoins will become the infrastructure of the AI era

Jeremy Allaire sets the tone for the growth potential of stablecoins at the Davos Forum. He stated that a 40% compound annual growth rate is a quite reasonable benchmark for the stablecoin industry. This is not just a summary of past performance but also reveals Circle’s deep judgment on the future prospects of stablecoins. In the era of large-scale AI agent applications, stablecoins are evolving from payment tools to critical infrastructure.

The Logic Behind Stablecoin Growth Rate

Why is 40% reasonable?

The 40% compound annual growth rate provided by Jeremy Allaire is not a guess. This figure reflects the actual growth rate of the stablecoin market in recent years and aligns with the broader trend of accelerating global digital economy development. In terms of scale, stablecoins have become the most important liquidity foundation in the crypto market, with growth rates even surpassing mainstream assets like Bitcoin.

According to the latest news, Circle recently burned $70 million worth of USDC, an action that precisely indicates the activity level of the stablecoin market. Large-scale burns usually mean that demand is continuously adjusting, and the market is in dynamic balance.

The New Role of Stablecoins: Infrastructure in the AI Era

Jeremy Allaire also emphasized that stablecoins are the only system capable of supporting billions of AI agents conducting large-scale transactions. This statement is crucial; it repositions stablecoins from traditional payment tools to the infrastructure layer of the AI economy.

Imagine: billions of AI agents in the future will need to perform massive microtransactions, which require a reliable, low-cost, and efficient settlement system. Traditional financial systems are obviously unable to handle this, and stablecoins fill this gap. This marks an important shift in the value of stablecoins from payment to computational economy.

Circle’s Multi-Dimensional Strategic Layout

Technology Layer: Gateway Expansion

Circle Gateway now supports 12 blockchains including Ethereum, Arbitrum, Avalanche, Base, Polygon, and Solana. This cross-chain capability is vital for stablecoin applications. Developers can quickly integrate USDC across different chains via Gateway, enabling liquidity for DeFi, payments, fund management, and other scenarios.

The inclusion of the Solana network is particularly noteworthy, as this chain is known for high throughput and low costs, making it an ideal platform for AI agent transactions.

Ecosystem Layer: Bermuda On-Chain Economic Projects

Circle’s collaboration with Coinbase to help Bermuda build the “first fully on-chain national economic system” is not only a pilot but also an important case for stablecoin application. USDC will be used for daily transactions among government, banks, and enterprises. Such a national-level application will significantly enhance the credibility and scale of stablecoin usage.

Market Layer: Growth Signals

According to Ark Invest’s 2026 “Big Ideas” report, stablecoins and tokenized assets are listed as key themes. Circle, as a core player in the stablecoin field, is considered a representative company for tokenized assets. This institutional recognition indicates that the stablecoin industry is about to enter a new growth phase.

Reasonable Expectations for Industry Outlook

If stablecoins can maintain a 40% compound annual growth rate, what does that mean?

At this growth rate, the stablecoin market size will double every two years. Coupled with the explosion of AI agent applications, national-level on-chain economic experiments, and increasingly complete cross-chain infrastructure, this growth rate does not seem aggressive but rather conservative.

However, it’s important to note that risks are also accumulating in the stablecoin market. Changes in regulatory environments, technological risks, and the influx of competitors could impact actual growth. But in the long term, the status of stablecoins as foundational infrastructure for the digital economy seems to be established.

Summary

The statements by Circle’s CEO at Davos reflect a rational assessment of the stablecoin industry’s prospects. A 40% compound annual growth rate is neither exaggerated nor overly conservative but a reasonable judgment based on current market conditions and future demand. Stablecoins are evolving from payment tools to the infrastructure of the computational economy in the AI era. Through technological expansion, ecosystem development, and strategic partnerships, Circle has gained a first-mover advantage in this transition. The key next step is whether they can truly support the transaction demands of the AI agent era.