Stablecoins are everywhere. In debates, regulations, investor dinners and even in Davos. Yes, the subject has gained momentum, up to the World Economic Forum, where crypto has been included in the menu of major discussions. And it was Jeremy Allaire, CEO of Circle, who stepped up to the plate. Faced with criticism from the banking world, he defended his dollar-backed tokens as a pillar of modern finance, and not a threat to it.
In brief
- Jeremy Allaire considers fears of bank panics linked to stablecoin returns “absurd”.
- Money market funds coexist with banks, proof that financial stability remains intact.
- Circle is developing Arch, a blockchain designed for exchanges between autonomous artificial intelligences.
- Stablecoins are becoming the natural bridge between traditional finance and the emerging crypto economy.
Banks in panic, Jeremy Allaire counterattacks in Davos
In Davos, Jeremy Allaire did not mince his words. Concerns about stablecoin returns? “ Totally absurd “. For him, comparing these digital assets to a time bomb is bad faith. Big banks, like Bank of America, have brandished the figure of $6,000 billion that could leak from their coffers if remunerative stablecoins were legalized.
But the CEO of Circle recalls that American monetary funds weigh more than 7,000 billion and coexist very well with the banking system.
He insists:
They promote loyalty and strengthen customer attraction… Interests are not high enough to weaken monetary policy.
The issue is not technical: it is political. American lawmakers are debating the CLARITY Act, which seeks to regulate stablecoins. For Circle, the risk is not to destabilize finance, but to slow down its transformation.
From Wall Street to code: how Circle supports the transformation of credit
If banks fear Circle, it is because it embodies a profound shift. Global credit is moving from bank balance sheets to capital markets and tokenized finance.
In the United States, Jeremy Allaire pointed out: a large part of recent economic growth has been financed by market debt, not by traditional loans.
USDC, Circle's flagship stablecoin, is becoming a transition brick: a bridge between classic finance and the crypto-sphere. Its model is based on transparency, compliance and liquidity, three qualities rarely combined in traditional markets.
This change does not destroy the banks; it completes them. The physical counter becomes code, and the trust relationship moves towards programmable protocols.
Thus, Circle is not a competitor to banks, but a digital ally. Where traditional finance is running out of steam, crypto invents new logics of flow, credit and profitability.
Circle, AI and the crypto of machines: a future already in motion
In Davos, Jeremy Allaire extended the debate beyond the markets. His message: stablecoins are not only made for humans, but also for artificial intelligence. He explained that billions of AI agents will need a native, programmable and stable means of payment.
In my opinion, today there is no alternative to stablecoins to accomplish this.
Jeremy Allaire
The tweets above echoed these remarks: they described AI agents as future autonomous economic actors, capable of paying, negotiating, investing. Circle sees this as obvious: without a stablecoin, no economic communication is possible between these digital entities.
To anticipate this era, Circle is building Arch, a blockchain dedicated to exchanges between AI agents and applications. In this vision, stablecoin becomes the universal language of automated finance.
Stablecoins, AI and crypto: 5 key benchmarks from Davos 2026
- 7,000 billion USD: outstanding balance of American monetary funds, without bank panic;
- 6,000 billion USD: bank deposits at risk according to the big banks;
- Arch: new Circle blockchain for AI agents;
- USDC: bridge between regulated finance and crypto-sphere;
- Allaire, CZ and Novogratz: all see AI as the future user of stablecoins.
The opposition between banks and crypto is gradually fading away. Even Silicon Valley investor David Sacks says this separation is coming to an end. The future will be that of hybrid finance, where Circle and traditional institutions will coexist, each contributing to building an economy where code and trust become one.
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