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USDC Issuer Circle expands into Asian markets

Updated: Jul 25, 2024
Published: Nov 16, 2021
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Blockchain-focused financial services company Circle sees opportunities in the Asian markets and plans to set up a regional headquarters in Singapore. The company has also invested in a stablecoin backed by the Japanese yen through its newly formed fund Circle Ventures.

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Circle Ventures invests into JPYC

The issuer of the second-largest stablecoin, USDC expects significant growth in the use of stablecoins in Asia. Jeremy Allaire the CEO of Circle said the company sees opportunities in Asian markets, where he expects strong adoption of stablecoins in borrowing and lending markets. He added that the inflation environment and the search for yield would drive markets to stablecoins in the first place.

It looks like this is the main reason why Circle Ventures contributed to a 500-million-yen ($4.38 million) Series A funding round for JPYC Inc., the issuer of the Japanese yen-pegged stablecoin JPYCoin. While the JPYC has not reached a market cap nearly so high, having a stablecoin based on yen would be of great advantage to Asian investors as cryptocurrency becomes an increasingly mainstream investment.

The company is also moving to Singapore

Circle is also busy getting its Singapore headquarters ready. The company is working with the Monetary Authority of Singapore to push the adoption of USDC among the country's major corporations. Speaking about the new headquarters in Singapore, Allaire said that his company aims to be among the first stablecoin issuers licensed in the city-state. He added that Circle is also working with the Monetary Authority of Singapore (MAS) to "establish a lighthouse project for USDC adoption for large corporates in Singapore."

One of the reasons why Circle is targeting Singapore and Japan could be that these Asian countries have not been as strict as other countries in the region when it comes to regulating cryptocurrencies. It would not make sense to try this in neighbouring China, which has been gradually cracking down on crypto activity this year, starting with mining and ending with a blanket ban on crypto trading within the country. South Korea has also increased regulatory pressure on crypto trading, leading to the closure of many virtual asset exchanges in the country in recent months.

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