$USDC Dominates AI Payments with 99% Market Share

Circle's CEO revealed that USDC AI payments now account for nearly the entire market for machine-driven transactions. According to Coinfomania, Circle's CEO said $USDC holds a 99% share of payments made by artificial intelligence systems.

This dominance in AI payments signals that stablecoins have quietly become the default settlement layer for machine-to-machine commerce. The logic behind this dominance is straightforward: AI agents need a payment rail that settles instantly, holds a stable value, and doesn't require a bank intermediary for every micro-transaction.

USDC's stability and reliability make it a natural fit for these automated payment mechanisms as they gain traction across the industry. Bernstein's research found that USDC's proportion of adjusted stablecoin transaction volume increased from approximately 40% in 2025 to exceeding 60% through 2026, overtaking Tether's $USDT by this measure.

Wall Street analysts are treating this transaction-volume shift as evidence of a genuine turning point rather than a short-term blip. Bernstein described USDC's recent trajectory as a 'digital dollar reflation,' pointing to a roughly $2 billion increase in USDC supply over just seven days, reversing six months of flat growth.

Bernstein maintained an Outperform rating on Circle (CRCL) and set a $140 price target, implying around 60% upside from current levels. This matters beyond Circle's stock price, as it signals that institutional investors are starting to price in machine-to-machine commerce as a distinct revenue driver.