Circle, the issuer of USDC stablecoin, plans to expand into Hong Kong, awaiting new stablecoin regulations for clarity of operations. By Bhushan Akolkar 10 mins ago
Highlights
- Circle is considering a local license to establish a business presence in the Hong Kong region.
- Circle is preparing for its IPO, with CEO Jeremy Allaire affirming about the plans ahead.
- Beyond Hong Kong, Circle is exploring broader expansion across Asia-Pacific markets.
Circle, the issuer of the second-largest stablecoin USDC has now declared its intentions to expand into the Asian market just as it gears for its IPO plans. The company is now eyeing an expansion into Hong Kong, amid plans for the region to become Asia’s crypto hub.
Circle Seeks A License to Launch Stablecoin in Hong Kong
USDC stablecoin issuer Circle has highlighted Hong Kong as a potential market in its current expansion plan. Thus, the crypto firm has also announced its intent to grow its workforce and business presence there, reported a local publication in Hong Kong.
Circle is awaiting the rollout of new stablecoin regulations in Hong Kong and is considering applying for a local license once the regulatory framework is in place. As per the crypto firm Circle, Hong Kong provides a significant advantage for stablecoin development, including same-day USD settlement capabilities. As a result, Circle will be competing with Chinese e-commerce giant JD.com over having a HKD stablecoin in the market.
Furthermore, it can also benefit from Hong Kong’s status as an ideal hub for stablecoin innovation and growth. Over the past two years, Hong Kong has taken several pro-crypto measures while welcoming the launch of spot Bitcoin and spot Ether ETFs in the region. Although the demand remains subdued in comparison to the US Bitcoin ETF market, it still shows a strong regulatory acceptance for crypto investment products.
Apart from Hong Kong, Circle has also been eyeing expansion into other markets like Australia and the Asia Pacific.
IPO Plans Ahead In Works
USDC stablecoin issuer Circle has continued to hold its IPO plans in place, affirmed CEO Jeremy Allaire during his Bloomberg interview last week.
Circle’s IPO plan dates back to two years ago when the stablecoin issuer sought a public listing via SPAC. However, it failed to materialize at that point. Earlier this year in January, the firm also filed a draft statement to pursue the IPO plan. Going public will be a big step for the USDC issuer while helping the firm boost its market presence across the global market.
Jeremy Allaire stated that Circle currently has no need to raise additional funds from the private market. “We’re in a financially strong position and have been able to build a very solid business, and we’re currently not seeking any funding,” he said.
On the other hand, Tether CEO Paolo Ardoino has stated that the company has no IPO plans for now. This comes amid the recent allegations of a DOJ investigation into Tether, which has been outrightly rejected by the CEO.