US Payments Startup Circle to Expand Stablecoin Presence in Asia

Usha  |  Nov 25, 2021

Circle, a US payments startup, has said it would invest more in Asia to promote the usage of its stablecoin, a fast-growing cryptocurrency tethered to the US dollar. Circle recently made its first investment in Japan through a newly formed venture capital arm, participating in a 500 million yen ($4.4 million) funding round for JPYC, a startup developing a yen-tied stablecoin. Circle has announced intentions to open a hub in Singapore to test stablecoins with local businesses.

US Payments firm Circle Eyes Market of Asia to Expand its Stablecoin Presence

"From a trading viewpoint, Asia has been one of the fastest developing regions for crypto," CEO Jeremy Allaire said in a video interview from Washington.

Circle is expanding into Asia as it prepares to go public in the United States by combining with a particular acquisition company for a $4.5 billion valuation. In 2019, Circle and Coinbase, a leading cryptocurrency exchange in the United States, formed a joint venture to create USDC. Stablecoin has grown to become the second most valuable market capitalization, with a circulation of more than $35 billion.

Circle has also announced the setting up of a center in Singapore. Allaire plans to "show the potential and value of stablecoins to large Singapore enterprises," according to the company. The company is racing to expand internationally in the face of stiff competition from other stable coins.

Despite questions from US regulators over its reserves, Tether, the largest stablecoin issuer, has seen its circulation grow to $73 billion. The Commodity Futures Trading Commission fined Tether $41 million in October for making false or misleading statements regarding its stablecoin.

China Testing the Digital Renminbi to Run Trials in the Winter Olympics

Central banks all around the world are investigating the possibility of developing a digital version of their currency. China, which has outlawed cryptocurrencies, has been experimenting with the digital yuan and wants to hold trials during the Beijing Winter Olympics. In April, the Bank of Japan began testing its central bank digital money.

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