Circle Eyes Asia’s Growing Demand for USDC: New Major Payment License in Singapore
• Circle is closely monitoring the emerging crypto markets in Asia, particularly Hong Kong and Singapore.
• Hong Kong recently approved retail crypto trading, while Circle obtained a Major Payment Institution license in Singapore.
• CEO Jeremy Allaire advocates for a “full reserve model” that combines cash and short-duration Treasury bills.
Circle Eyes Growing Demand for USDC in Asia
Circle, the issuer behind USD Coin (USDC), has been closely monitoring the emerging crypto markets in Asia with great interest. According to CEO Jeremy Allaire, there is a significant and growing demand for stablecoins backed by the U.S. dollar in these emerging markets, particularly in Asia. As a result, Circle has made Asia a key focus area for their operations, having recently secured a Major Payment Institution license in Singapore and closely following regulatory developments in Hong Kong.
Hong Kong’s Regulatory Progress
Hong Kong recently approved retail crypto trading on June 1st as part of its ambition to establish itself as a prominent crypto hub. This move was acknowledged by Allaire who noted that Hong Kong is positioning itself as a major center for digital asset markets and stablecoins. Circle is actively monitoring the regulatory progress of this region to understand how it could affect the wider Greater China market.
Singapore License Approval
In addition to keeping an eye on Hong Kong’s progress, Circle also obtained a Major Payment Institution license from Singapore on June 7th . This enables them to distribute USDC more fully across multiple markets including Tokyo, Paris, London , and the U.A.E., advancing along with the U.S.. Allaire believes each of these markets serves different dimensions of the economic system and that no single market will dominate at the expense of others.
Full Reserve Model: The Future?
The global drive for stablecoin regulations is gaining momentum with even Japan introducing their own frameworks – an indication that fiat-linked digital currencies are on track towards integration into mainstream global financial systems according to Allaire . He proposes using a “full reserve model” when regulated and supervised by banking authorities which would create one of world’s safest stablecoins .
Overall , Circle’s close attention towards Asian cryptocurrency markets reflects both its ambition to become well established in all new spaces but also speaks volumes about increasing demand for secure payment solutions within these regions . With recent licensure approvals from both Singapore and Hong Kong , it looks like they are well placed to capitalize on this growth over time .