In Stablecoin Payments, ‘We Intend to Be the Leader,’ Says Circle’s CEO

The payments industry for some time has been seeking meaningful growth in applications based on cryptocurrency, and early on Wednesday, one of the industry’s biggest players in that corner of the marketplace said it is making that happen with stablecoins—digital currency whose value is tied to fiat money like the U.S. dollar.

Now, “we intend to be the leader in this space,” said Jeremy Allaire, Circle Internet Financial’s chief executive, during a call with equity analysts to review the New York City-based company’s third-quarter results. “Gaining share in digital-asset markets is a priority.”

Circle has posted some numbers that tend to back up that intention. It reported its stablecoin, USDC, is growing fast and taking market share. It posted $73.7 billion in circulating value in the quarter, good for 29% of the market total and up from 23% a year ago. At the same time, the company has pursued alliances to increase the usage of stablecoins, including a venture with Visa Inc. to use stablecoins for Visa Direct, the card company’s instant-payments platform.

But one of Circle’s biggest undertakings emerged in August with the unveiling of Arc, a blockchain designed to handle major money flows and work with the company’s existing Circle Payment Network. Now expectations for Arc are running high, as the new system is intended, Allaire said, “to bring real-world economic activity on-chain.” Beyond that, Circle is “exploring a token for the Arc network,” Allaire said, though he did not elaborate.

Meanwhile, CPN itself generated $3.4 billion in annualized volume in the quarter, Circle reported, with 29 financial institutions enrolled for participation and some 500 more in the pipeline.

Cross-border applications are drawing strong interest, Circle reported, but Allaire hinted interest is also growing broader. “We are seeing major retail acceptance. There are major partnerships we’re forming around the world based on [our] growth,” he said. “We are leaning in where we see traction.”

This activity is driving financial results. The company reported $740 million in revenue for the quarter and $1.98 billion for the first nine months, up 66% and 59%, respectively. Net income for the quarter was $214 million, up from $71 million a year earlier, though for the first nine months the company logged a $203 million loss, compared to a positive $153 million for the same period last year.

Now, Circle is seeking partnerships, according to Allaire. “We have built a very powerful network,” he said. “People can’ afford to not support and integrate with us.”