Circle, the issuer behind major stablecoins USDC and EURC, has clarified that it currently has no plans to launch a Hong Kong dollar-backed stablecoin though it remains open to collaborations with other firms exploring that path.
💬 Circle Focuses on Expanding USDC and EURC in Asia
In an interview with the Hong Kong Economic Times, Chen Qinqi, Circle’s Vice President for the Asia-Pacific region, said the company’s priority remains expanding the adoption of USDC (U.S. dollar-pegged) and EURC (euro-pegged) across Asia.
“We’re focusing our efforts on scaling the usage of our existing stablecoins rather than issuing new ones,” Chen noted.
As of now, USDC holds a market capitalization of $75.28 billion, making it the world’s second-largest stablecoin after Tether’s USDT. Meanwhile, EURC leads among euro-backed stablecoins, accounting for 45% of that market segment with a cap of $266.5 million.
🏛️ Hong Kong’s Growing Stablecoin Scene
Circle’s announcement comes as Hong Kong becomes a new hub for stablecoin innovation. Since the Stablecoin Ordinance took effect on August 1, several firms have expressed interest in obtaining licenses to issue HKD-pegged stablecoins.
The new law provides a clear regulatory framework for stablecoin issuers under the Hong Kong Monetary Authority (HKMA), defining the standards and requirements companies must meet to operate legally.
Despite this, Chen clarified that institutional investors in Hong Kong can already use USDC under the existing regulatory framework without needing additional oversight related to the new ordinance.
Circle also holds a license from Singapore, further strengthening its position in the region.
🌏 Circle’s Regional Reach
Institutional investors can acquire USDC directly from Circle or through its partners, while retail users can access it through approved platforms.
Although Circle is not directly regulated in Japan, USDC became the first stablecoin approved by Japanese regulators for public use through licensed institutions. Both retail and professional investors in Japan can obtain USDC via Circle’s local partners.
Earlier this year, CEO Jeremy Allaire hinted at potential expansion into Hong Kong, mentioning that the company might open a local branch and even apply for a license under the new framework. However, Chen said those plans are still under review, with no confirmed office location or specific regulatory application filed yet.
🪙 Circle’s Stablecoin Dominance
According to DeFi Llama, USDC trails only behind Tether (USDT) in total market cap but boasts a faster daily growth rate 0.41% compared to USDT’s 0.06%.
Circle’s EURC also remains dominant in the non-USD stablecoin category, though it still trails behind A7A5, the ruble-backed stablecoin that controls over 40% of that market. EURC would need an additional $213 million in capitalization to claim the top spot.
Overall, the stablecoin sector has grown beyond $300 billion in total market cap, with JPMorgan predicting it could reach $2 trillion within two years as adoption accelerates globally.
Related Reading
- [Hong Kong to Introduce Stablecoin Auditing Guidelines Within 3 Years]
- [Ruble-Backed A7A5 Becomes the Largest Non-USD Stablecoin]
