Circle is expanding the use of its USDC stablecoin in Hong Kong, capitalizing on the city's regulatory clarity to focus on institutional adoption. No plans are currently in place to launch an HKD-pegged stablecoin, as the company prioritizes growing USDC and its euro-backed EURC in global markets. Institutional investors in Hong Kong can access USDC without additional regulatory steps under the current legal framework, as confirmed by Chen Qinqi, Vice President of Circle Asia-Pacific.
The expansion mirrors Circle's successful strategy in Singapore, emphasizing compliance and on-chain market activity. Hong Kong's supportive regulatory environment has fueled $2.4 trillion in stablecoin activity across Asia-Pacific over the past year, potentially boosting liquidity for connected cryptocurrencies like ETH and BTC indirectly. Circle holds a license in Singapore and is evaluating opportunities in Hong Kong, though no license has been applied for yet under the new Stablecoin Ordinance.
EURC leads the euro-backed stablecoin market with a market cap of $266.5 million, accounting for over 45% of the $570 million sector. While Circle remains open to collaborations in Hong Kong, its immediate focus is on strategic growth of existing products rather than new token launches.
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