According to a local report, the USDC issuer plans to expand its workforce and operational footprint in the region and intends to apply for a license once Hong Kong’s new stablecoin regulations are finalized.
Circle’s interest in Hong Kong is reportedly driven by several factors, including the city’s infrastructure for same-day USD settlements, which it sees as beneficial for stablecoin development.
This focus on Hong Kong capitalizes on the city’s pro-cryptocurrency regulatory stance. In July 2024, the Hong Kong Monetary Authority (HKMA), the city’s top financial regulator, released reports on the public consultation regarding its proposed licensing regime for stablecoin issuers. Notably, this initiative is part of a broader legislative effort aimed at transforming and regulating the digital asset sector.
The revelation follows the stablecoin issuer’s recent partnership with HKT, Hong Kong’s leading telecom provider. On October 29, 2024, the companies signed a Memorandum of Understanding to explore blockchain-powered customer loyalty solutions.
The firm noted the initiative will use its Web3 tools, like programmable wallets, to help merchants build stronger connections with consumers by integrating digital assets and smart contracts into their existing systems. It claimed the collaboration reinforces its commitment to leveraging blockchain technology in everyday applications.
In addition to Hong Kong, Circle has revealed expansion plans for other regions in the Asia-Pacific, including Australia, as it gears up for its Initial Public Offering (IPO).
CEO Jeremy Allaire recently reiterated in an interview with Bloomberg that Circle’s IPO ambitions remain on track despite previous delays. The company initially aimed to go public two years ago via a SPAC but did not proceed at the time. The firm reportedly filed a draft statement as part of its renewed IPO effort in January 2024.
Allaire emphasized that Circle is financially stable and not seeking additional funding. “We’re in a strong financial position and have built a solid business,” he stated.
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