Circle's CEO on the Booming Business of Stablecoins
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Hello and welcome to another episode of the Oddlots podcast. I'm Joe Weisenthal.
And I'm Tracy Alloway.
Tracy, I have three thoughts about stable coins.
Oh boy, here we go.
Just three. Just three. One is, I think within the broader realm of crypto, stable coins are real and here to stay and probably going to be important. Two, some of them seem like an absolute cash money maker because you don't pay any yield to the holders, you collect the yield for what you have backing it. It's a great business model. It seems amazing. And three, as the child of the uh great financial crisis generation, I'm convinced that if crypto is ever implicated in a future financial crisis, it might have something to do with stable coins.
You stole all my talking points too. Honestly. I had like the note written down that, you know, issuing liabilities that mostly return nothing is a wonderful business model. And
what else did you could just restate it in your words.
Well, also, I was thinking stable coins are basically the primary touch point of crypto to the regulated financial system. And so you would expect some of those financial stability concerns to potentially materialize there. And then the one thing you didn't mention that I'm interested in is also this idea of competition directly with the banks. And as stable coins get more money market fund. like, maybe more deposit like. We have some stable coins that issue yield now. We have to do that. What does that actually look like for the financial landscape?
Totally. For traditional payment companies of all sorts, I mean we all know that Legacy payment companies collect a pretty big rent, so to speak, for use of their network. In theory, there could be almost no cost at all for a stable coin transaction or virtually minimal. It seems appealing. On the other hand, getting people to switch en masse from using like a sort of debit card or credit card to a stable coin is sort of a tricky chicken and egg problem. But you know, it's a real competitor to an existing way of doing payments.
Also, the one thing we didn't mention is it's kind of becoming important from a fiscal standpoint for the United States. And you have Treasury Secretary Scott Besson saying that he expects all this new stablecoin issuance to basically increase demand for US debt for treasuries for mostly T bills. And so there's a lot to talk about.
There is a lot to talk about. We really do have the perfect guest today. We are going to be speaking with Jeremy Alaire. He is the co-founder and CEO of Circle Internet. They recently went public in early June, and they've had a monster IPO. Incredible demand for this company, incredible enthusiasm. They are, of course, the sponsor of USDC, one of the, I think it's the second biggest stablecoin out there after Tether. So Jeremy. Jeremy, thank you so much for uh coming in studio here on Oddlots.
I'm really excited to be here. As uh you guys laid out, there's a lot to talk about.
I said it in the beginning, stable coins seem like an incredible business model because here you have all these people holding a non-yield bearing token.
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Chapters
5 chapters
1
What is the overall focus of this Oddlots episode and who are the hosts?
0:00–5:16
2
Why is Jeremy Allaire, CEO of Circle, the right guest to discuss the stable‑coin boom?
5:16–16:21
3
How does Circle make money from USDC and what is its business model?
16:21–36:53
4
What role does the GENIUS Act play in shaping stable‑coin regulation and Circle’s operations?
36:53–47:42
5
In what ways is USDC competing with traditional banks and payment networks?
47:42–52:04
Speakers
7 identifiedMore from Odd Lots
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