Circle Projects Yuan Stablecoin Launch in 3-5 Years, Eyes Global Payments
Circle CEO Jeremy Allaire says China could launch a yuan-backed stablecoin within three to five years to accelerate global payments and currency competition. Circle’s USDC circulation rose 72% year-on-year to $75.3 billion by end-2025, with ‘several billion dollars’ in transaction growth following geopolitical tensions.
1. CEO Sees Yuan Stablecoin Opportunity
Jeremy Allaire highlighted China’s plan to expand yuan’s global use through a blockchain-based stablecoin that could be launched within three to five years, positioning the currency to compete technologically in cross-border payments.
2. Strong USDC Growth and Transaction Surge
Circle’s USDC supply climbed 72% year-on-year to $75.3 billion by end-2025, and the firm recorded several billion dollars in transaction growth after the outbreak of the U.S.-Iran war as geopolitical risks rose and clients sought portable digital dollars.
3. Hong Kong Dollar Stablecoin Integration
Circle is exploring partnerships to develop Hong Kong dollar stablecoins for faster, cheaper cross-border settlement and to enhance its global payments network through local currency tokenization.
4. U.S. Regulatory Outlook Under CLARITY Act
The pending CLARITY Act could restrict marketing of interest-bearing stablecoin products, with potential impact on distributors more than issuers and shaping Circle’s U.S. stablecoin strategies.