How Jeremy Allaire Built Circle and Made USDC a Stablecoin Giant
On a Friday evening in March 2023, panic gripped the crypto market. USDC, a so-called reliable stablecoin, temporarily lost its dollar peg, dropping below $1.
On this page
As investors rushed to withdraw billions, headlines speculated: Would Circle, the company behind USDC, survive the crisis? Or would another stablecoin succumb to the volatility of the crypto market?
For Circle’s CEO and founder, Jeremy Allaire, the panic became a defining test of resilience.
However, this wasn’t the first time Allaire had faced uncertainty on such a massive scale. But as the pressure intensified, one thing became clear: trust, transparency, and an unshakable belief in the future of digital money were the only path forward.
To understand how USDC rose to become a stablecoin giant, we need to look back at its origins.
Early Years: From the Internet to Digital Finance
Jeremy Allaire’s career began in the mid-1990s, when the internet was still a nascent technology.
In 1995, he co-founded Allaire Corporation with his brother, Joseph Allaire, a programmer and internet entrepreneur. Their goal was to simplify web development.
Their product, ColdFusion, became a major success, attracting over 1.5 million developers. By 2001, the company had gained such prominence that Macromedia acquired it for $360 million. Following the acquisition, Jeremy Allaire became Chief Technology Officer (CTO) at Macromedia, where he played a key role in developing the Macromedia MX platform.
Before long, he was drawn to new challenges. In 2004, Jeremy launched Brightcove, a video content platform that arrived before the streaming boom. The company secured major contracts with The New York Times, Time Warner, and other media giants, eventually going public with a $290 million valuation.
After nearly a decade as CEO, Allaire saw a new frontier—cryptocurrencies.
In 2013, he took the boldest step of his career.
The Birth of Circle: A Bold Bet on Digital Money
In October 2013, Jeremy Allaire co-founded Circle Internet Financial with a mission to bring digital currencies into the mainstream. Unlike many crypto enthusiasts who sought to evade regulation, Allaire embraced it.
The company launched with $9 million in funding and, in 2014, introduced Circle Pay, a platform that allowed users to easily exchange fiat for BTC and vice versa.
By 2015, Circle became the first company in New York State to obtain a BitLicense*—a landmark achievement in crypto regulation.
*BitLicense refers to a virtual currency business license issued by the New York State Department of Financial Services (NYSDFS). It establishes regulatory standards for companies operating in the crypto industry.
However, the turning point came in 2018, when Circle and Coinbase co-founded the CENTRE consortium and introduced USD Coin (USDC).
Jeremy Allaire believed the crypto market needed a fully transparent, auditable, and 1:1-backed digital dollar.
We’ve long believed in the importance of building stable, trusted, and compliant digital currencies that can operate at scale,
he said at the USDC launch.
However, entering the stablecoin market meant direct competition with Tether (USDT)—the dominant player that had already established a strong market presence.
The big question was: Could trust and transparency outweigh the first-mover advantage?
The Rapid Rise of USDC
USDC quickly gained momentum, becoming a key asset for crypto trading, DeFi apps, and institutional cross-border transactions.
By 2021, its market capitalization had surged to tens of billions of dollars.
Unlike USDT, USDC was fully backed by cash reserves and U.S. Treasury bonds, held by custodians such as BlackRock and BNY Mellon. This unparalleled transparency earned the trust of major financial institutions.
Related: Living with Stablecoins: The Use Cases Explained
Moreover, Circle’s strategic partnerships played a key role in expanding USDC adoption:
- In 2020, Circle partnered with Visa, allowing businesses to use USDC anywhere Visa cards were accepted.
- In 2021, MoneyGram integrated USDC for remittances, creating a bridge between crypto and traditional finance.
- By 2023, fintech companies and banks had begun adopting USDC for international payments.
With integration across more than 16 blockchains, USDC became a foundational element of the digital economy.
By early 2025, USDC controlled around 20% of the stablecoin market and, at times, surpassed USDT in on-chain transaction volume.
This is not just about crypto. Digital dollars are going to change how global finance operates,
Allaire explained.
Crises, Setbacks, and Resilience
The collapse of Silicon Valley Bank (SVB) in March 2023 was the biggest test for USDC. A portion of Circle’s reserves—$3.3 billion (about 8% of USDC’s total supply)—was frozen in the bank, which was on the verge of bankruptcy.
For 48 hours, the market was in turmoil. USDC lost its dollar peg, dropping to $0.88, and skeptics predicted its downfall. However, Circle’s leadership remained optimistic.
Trust, safety, and 1:1 redeemability of all USDC is of paramount importance,
Jeremy Allaire reassured investors.
The Circle team worked closely with regulators, and once U.S. authorities guaranteed SVB’s deposits, trust was restored, allowing USDC to swiftly regain its dollar peg.
The crisis underscored the importance of full reserve backing, a principle Circle had championed from the start, and reinforced the need for clearer regulatory frameworks.
Read more: 5 Key Takeaways from the USDC Depeg
However, challenges didn’t end there. In 2024, Circle planned to go public via a SPAC merger valued at $9 billion, but the deal fell through due to changing market conditions. While some viewed this as a major failure, Jeremy Allaire remained steadfast.
In 2025, Circle filed for a traditional IPO, reaffirming its commitment to a long-term strategy.
We are committed to building a financial infrastructure that lasts for decades,
Allaire stated.
Regulatory Battles and Global Expansion
Unlike many competitors that operated in regulatory gray areas, Circle actively participated in shaping crypto regulations.
In 2024, the European Union passed MiCA (Markets in Crypto-Assets) Regulation. Circle became the first global stablecoin issuer to receive full licensing under MiCA, providing it with a legal foundation to operate across all 27 EU member states.
Beyond the EU, Circle also secured regulatory approvals in Japan, Singapore, and the UK, further solidifying USDC’s position in the global financial system.
Meanwhile, regulatory uncertainty in the U.S. remained unresolved. Jeremy Allaire testified before Congress, warning that without clear stablecoin regulations, the U.S. risked falling behind in digital finance.
This allows the U.S. to project and export digital dollars all around the world,
he said.
What’s Next for Circle and USDC?
As of 2025, Circle remains a private company, but its IPO plans are still in motion. Meanwhile, USDC is expanding beyond the crypto market, seeing increased adoption in business payments, remittances, and financial infrastructure.
For Jeremy Allaire, however, the mission is far from complete.
We’re at the beginning of a transformation,” he said in 2024. “The way money moves will be as instant and borderless as email,
he said in 2024.
However, the competition for digital dollars is intensifying. Governments are exploring CBDCs, and new stablecoins are emerging to challenge the market.
And Jeremy Allaire is firmly committed to leading this transformation.
The question is no longer if digital dollars will replace parts of traditional finance – it’s how soon,
he says.
With regulatory transparency, strong institutional adoption, and a high level of trust, USDC stands as one of the most promising digital assets for long-term success.
Read more: Circle CEO Foresees Banks Entering the Crypto Arena
From Vision to Reality: How Jeremy Allaire Transformed Global Finance
Jeremy Allaire’s journey—from pioneering the early internet to leading the stablecoin revolution—reflects his deep understanding of technology, finance, and regulation.
He didn’t just build a company; he helped shape the future of digital finance. As regulatory frameworks evolve and digital asset adoption accelerates, USDC’s influence in the global financial system continues to grow.
As the world transitions toward a fully digital economy, Allaire’s vision is turning into reality.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
