Blockchain-focused financial services company – Circle – intends to establish a regional headquarters in Singapore. The company will also invest in a Japanese yen backed stablecoin as part of its newly designed project – Circle Ventures.
Circle Sees Opportunity in Asia
According to a recent Bloomberg report, Circle – the issuer of the second-largest stablecoin, USDC – expects significant growth in the use of such tokens soon. Speaking on the matter was Jeremy Allaire – Chief Executive Officer at the company – who believes the Asian markets are full of opportunities and suitable for the potential developments of USDC or the industry leader Tether.
“Especially in the inflation environment we find ourselves in and the search for yield, this will be a big, big theme. While a lot of people want to focus on people hedging themselves by buying bitcoin directly, we think of the stewards of capital within companies and corporate treasuries etc.
Touching upon the new headquarters in Singapore, Allaire said his firm aims to be among the first stablecoin issuers licensed to operate in the city-state. He added that Circle is also working in collaboration with the Monetary Authority of Singapore (MAS) to “establish a lighthouse project around the adoption of USDC for major Singapore businesses.”
Stable coins, such as USDC or Tether, are cryptocurrencies whose value is tied to an external asset – for example, fiat currencies or gold – to stabilize the price. They have grown significantly alongside the broader digital asset space throughout the past few years, reaching a market capitalization worth billions of dollars.
On that note, Allaire expressed hope that stablecoins might have more use cases over the next two years, such as incorporating them for payments, forex (FX), decentralized finance (DeFi) and d ‘others.
Earlier this month, the POTUS Working Group on Financial Markets (PWS) released their long-awaited regulatory report on stablecoins. Starting with the benefits, the government unit admitted that they allow “a faster, more efficient and more inclusive payment option”. On the other hand, there is concern about their use in illicit financial operations and money laundering. To combat this risk, the report encouraged international collaboration.
In addition, the PWS has proposed to regulate companies like Circle as a national insurer depository under the supervision of the Fed. To a large extent, Allaire agreed with those requirements. He noted that looking at the volume of stablecoins in circulation and the number of transactions completed with the asset class, the proposed regulation could result in broader adoption:
“We support this recommendation. We think [this] represents a significant step forward in the growth of the industry.
