Circle (USDC) Expands Influence in Asia by Establishing Yen Stablecoin and Local Investment Fund

Circle wants to settle in Asia and create a yen stablecoin

Is the Circle company preparing its rear in the event of tightening of regulation in the United States? In any case, she seems to want to turn to the Asian market. No wonder when you remember that Asia is the primary market for cryptocurrencies.

To meet this objective of strengthening its presence on the Asian continent, the issuer of the USDC stablecoin will create a local head office. This will be located in Singapore. Circle will also establish a regional venture capital firm called Circle Ventures.

The information was revealed by Circle CEO himself, Jeremy Allaire, in an interview with major US media outlet Bloomberg. Circle Ventures’ first investment will be for putting into circulation a stablecoin replicating the price of Japan’s currency, the yen.

Allaire adds that his company sees many opportunities within Asian markets. In particular, he sees a massive adoption of local stablecoins for borrowing and lending on exchange platforms.

👉 To go further – United States: the SEC appointed to regulate American stablecoins

A careful presence in Asia for Circle

Circle is currently recruiting for its future regional headquarters in Singapore. The goal is to make Tether’s competitor (USDT) one of the first stablecoins in the world to be allowed on the island.

The CEO of Circle said in particular that his teams were working with the Monetary Authority of Singapore (MAS), the Singaporean financial regulator.

The goal is to enable major large companies in the country to adopt the USD Coin. This enthusiasm for Allaire for the regulatory side is not surprising when you consider that he has supported the fact that issuers of stablecoins can be assimilated to banks in the United States.

Unlike Tether, Circle is transparent enough about its reserves to support USDC. The company has so far never been worried by financial authorities across the Atlantic, including the Securities and Exchange Commission (SEC).

👉 To read – United States: will an issuer of stablecoins be assimilated to a bank?

Will the stablecoins promised by Circle be used massively in Asia?

For Jeremy Allaire, there is no doubt: stablecoins will be used heavily in the future, in Asia or elsewhere. Certain data and information tend to affirm this position. First, at the end of 2020, Circle signed a partnership with Visa. Likewise, with the competitor Mastercard, a test phase has been launched.

For the USD Coin alone, capitalization has grown from $ 400 million in 2020 to over $ 35 billion today, an increase of 8650%. As for Tether, more than 70 billion USDT token are currently in circulation.

However, these stablecoins are almost exclusively pegged to the US dollar. It is therefore difficult to know whether stablecoins backed by local currencies will be used massively or not. What is certain is that Circle will do whatever it takes to make it happen.

👉 To read – Mastercard launches cryptocurrency payment cards in Asia

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About the author: Benjamin Allouch

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Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.

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