Senior executive advised emerging rivals of Circle to forgo the launch of stablecoins., 2026/02/03 13:59:23

The Chief Commercial Officer of Circle, which issues the USDC stablecoin, Kash Razzaghi, urged companies considering the launch of their own stablecoins to think carefully before proceeding.

Creating a token is straightforward, but establishing a stablecoin that commands global trust requires a robust infrastructure and adherence to regulations, Razzaghi explained. He noted that managing a stablecoin extends far beyond mere programming: issuers must oversee reserves in real-time, maintain communication with numerous banking partners, conduct independent audits regularly, and ensure continuous monitoring.

If stablecoin issuers fail to keep up with these responsibilities to sustain the ecosystem, it could lead to significant disruptions, risking the stablecoins’ peg to fiat currency. The Circle executive stated that operational demands often exceed the expectations of most entrepreneurs, particularly when they begin servicing large enterprises or expand into international markets.

According to Razzaghi, liquidity and trust are the keys to the success of major stablecoins. Despite the existence of over 300 stable digital currencies, only a few have gained worldwide popularity. By 2025, the stablecoin market is projected to surpass $300 billion, with USDC finishing the year boasting a market capitalization exceeding $75 billion, the commercial director noted. He advised companies exploring the launch of their own tokens to reconsider and consider partnering with established market players, hinting at his own Circle.

According to ARK Invest, following the October downturn in the crypto market, the growth of stablecoin supply has nearly stalled. USDC accounted for over 60% of all stablecoin transactions.