Monday, September 14, 2026

Circle and Tether emerge as key beneficiaries of the neobank boom

  • Circle's USDC and Tether's USDT are benefiting significantly from the growth of neobanks in emerging markets, providing the stablecoin infrastructure for their payment rails.
  • Despite rapid customer acquisition, approximately 76% of these digital banks remain unprofitable, struggling with revenue models based on interchange fees.
  • While neobank profitability is a concern, the underlying demand for stablecoins due to their speed, cost savings, and 24/7 settlement is expected to remain strong.

Topics: Asset types, Scalability, Institutional adoption, Stablecoins digital cash, Growth metrics, Asset manager initiatives

Tags: #circle #tether #usdc #usdt #neobanks #stablecoins #fintech #emergingmarkets #digitalbanks #crossborderpayments

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