Circle has released its “Internet Financial System 2026” report, highlighting a significant evolution of the global financial landscape. This transformation is moving away from traditional frameworks towards an open, regulation-compliant, and internet-native infrastructure, as stated by Dante Disparte, Circle”s chief strategy and global policy officer.
The report emphasizes a transition towards a new economic coordination model, where public blockchains serve as the foundational layer for financial operations. Circle, particularly through its stablecoin USDC, is positioned as a pivotal component of this innovative system.
While acknowledging the current “stablecoin moment,” Circle views it as indicative of broader systemic changes. The report asserts that USDC has emerged as the world”s largest regulated digital dollar, boasting a remarkable 108% year-over-year increase in circulation. The Circle Mint platform now facilitates transactions across more than 185 countries.
The volume of onchain USDC transactions has surged by 680% year-on-year, reaching nearly $10 trillion in the third quarter of 2025. This data reflects the rapid pace of a constantly active economy. Additionally, in collaboration with the UN Refugee Agency, Circle initiated a humanitarian program in December 2022, providing USDC assistance to Ukrainian refugees. This initiative successfully reached thousands and has since expanded to Latin America.
Circle emphasizes that the privilege of issuing a stablecoin comes with the responsibility of ensuring redemption rights. Over the past year, approximately $217 billion worth of USDC has been redeemed, demonstrating its deep integration within the global banking system. Cumulatively, USDC has enabled over $50 trillion in onchain settlements, claiming a market share of 29% in stablecoin circulation and 40% in transaction volume.
In its foreword, Circle notes that the past year has marked a new phase in its development. The company”s initial vision has been reinforced by its IPO and the establishment of key stablecoin regulations in major economies, solidifying both USDC and Circle as integral components of an internet-native financial system.
The report outlines that what was once a visionary concept—free movement of money as a software object on the internet—has transitioned into reality. Global regulators have increasingly recognized fully backed digital dollars, leading to greater adoption among businesses, governments, and financial institutions of open value exchange protocols.
Circle describes this evolution as the creation of an “economic operating system for the internet,” where public blockchains are maturing into reliable platforms for verified transactions, programmable contracts, and decentralized governance. According to the company, this infrastructure will facilitate trillions of dollars in transactions and value.
The report also highlights traditional financial institutions” roles, noting that Deutsche Bank has become Circle”s banking partner in Europe, adapting its risk management systems to accommodate regulated stablecoin issuers. The European MiCA regulation has been a key milestone, categorizing USDC and EURC as electronic money tokens and establishing a clear supervisory framework, which is now being used as a model for global expansion, including in Singapore and the United States.
Furthermore, Circle has observed a growing institutional interest in cryptocurrency assets. Since early 2024, following the approval of exchange-traded products based on bitcoin in the United States, over $120 billion has flowed into such ETFs, with additional Ethereum-based funds attracting nearly $18 billion. As noted by Carolyn Weinberg, head of products and innovation at BNY, today”s market evolution is not about completely replacing traditional systems with blockchain but rather about their collaboration to unlock new opportunities.
The enactment of the GENIUS Act has provided regulatory clarity concerning USDC for banks, payment providers, and businesses in the United States and other jurisdictions. Circle reports a 70% increase in stablecoin usage for payments since July 2025, particularly for cross-border transactions. As of December 14, 2025, USDC operates natively on 30 blockchain networks, with its cross-chain transfer protocol enabling transfers across 18 networks. In Q3 2025, USDC processed $31 billion in transactions, a 740% increase from the previous year.
In December 2025, Circle received conditional approval from the Office of the Comptroller of the Currency to establish a national trust bank, First National Digital Currency Bank, N.A., which, upon full approval, will manage USDC reserves in compliance with the GENIUS Act.
