Circle CEO Jeremy Allaire thinks stablecoins have a much bigger role ahead than most realize. At the World Economic Forum in Davos, he laid out a future where billions of AI agents run continuous transactions across the global economy.
And according to Allaire, only one payment system can handle that scale.
“There is no other alternative, in my view, other than stablecoins to do that right now,” he said.
Allaire expects this shift to happen within three to five years. Circle is already preparing. The company is building on Arc, a new blockchain designed specifically for agentic compute and the financial activity of AI-driven systems.
Allaire is not the only one making this case. Galaxy Digital CEO Michael Novogratz said in September 2025 that AI agents would become the largest stablecoin users “in the not so distant future.”
Binance founder Changpeng Zhao made similar comments at Davos, pointing to crypto as the backbone for AI commerce.
Real-world deployments are still in early stages. But the thesis is gaining ground among major players.
Beyond AI, Allaire addressed a hot topic in Washington: whether stablecoin yields could drain deposits from traditional banks.
His answer was blunt. He called the concern “totally absurd.”
Allaire pointed to money market funds as proof. U.S. money market funds hold around $7.7 trillion today, according to Investment Company Institute data. Balances grew by $868 billion over the past year, even as the Federal Reserve cut rates.
“They help with stickiness, they help with customer traction,” Allaire said. “Interest itself is not large enough to undermine monetary policy.”
These comments come as lawmakers debate the CLARITY Act in Congress. The bill aims to set federal rules for digital assets, and stablecoin yield restrictions have already caused delays and industry pushback in January 2026.
Allaire’s position is clear. Stablecoins are not a banking threat. They are infrastructure for what comes next.
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