Circle's CEO on the Booming Business of Stablecoins

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 31 July 2025

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

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Summary

Stablecoins are emerging as one of the most active areas of cryptocurrencies. The idea of using blockchain rails to transmit money has captured the attention of legacy financial institutions as well as policymakers, as evidenced by the recent passage of the GENIUS Act, which builds out a regulatory framework for that business. But what are the opportunities. And how do stablecoin providers actually make money? On this episode, we speak with Jeremy Allaire, the co-founder and CEO of Circle, which is the company that backs USDC, the second biggest stablecoin on the market. We discuss the company's business model, concerns about financial stability, and the prospects for stablecoins to open up entirely new avenues of payments and commerce.

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1:23.5	Hello and welcome to another episode of the Oddlots podcast. I'm Joe Wisenthall.
1:24.6	And I'm Tracy Allaway.
1:48.2	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 moneymaker 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,
1:54.4	as the child of the great financial crisis generation, I'm convinced that if crypto is ever implicated in the future financial crisis, it might have something to do with stable coins.
1:58.7	You stole all my talking points, Joe.
2:01.5	Honestly. I had like the note written down that, you know, issuing liabilities that mostly return nothing is a wonderful business model.
2:08.8	What else did you?
2:09.5	You could just restate it in your words.
2:11.0	Well, also I was thinking stable coins are basically the primary touch point of crypto to the regulated financial system. And so you would
2:19.4	expect some of those financial stability concerns to potentially materialize there. And then the one
	...

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