Circle executive: Stablecoin resistance risks $1 trillion in US demand

Chandhok’s estimate centers on the friction within the current international banking system, where roughly $3 trillion is estimated to be in transit at any given moment. These funds often sit idle due to outdated settlement protocols that rely on multi-day clearing processes. By contrast, stablecoins like Circle’s USDC allow for near-instantaneous transfers, creating a bridge for global capital that would otherwise remain tethered to traditional, slower institutions.

This push for broader adoption aligns with ongoing discussions regarding the GENIUS Act and the role of stablecoins in bolstering demand for US Treasury bills. Federal Reserve proposals issued in late September outline a framework for reserves, identifying short-term Treasury securities as primary backing assets for payment stablecoins. While current data suggests Tether and Circle have already increased their Treasury holdings by $70 billion since 2022, the transition of global demand into these assets remains a key legislative goal. As regulators work toward a January 2027 effective date for new issuer restrictions, the industry is increasingly focused on integrating these digital assets into the emerging 'agentic economy,' where software agents handle automated, high-volume transactions.