Circle, the company responsible for the popular USDC stablecoin, has been given the go-ahead to operate in Singapore. Following preliminary approval in November 2020, Circle’s Singapore branch has now received a full Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This means that Circle can offer USDC to a wider audience in Asia.
USDC is one of the most well-known and trusted stablecoins available. Each USDC token is backed 1:1 with US dollars held in highly liquid fiat reserves, according to the company.
What Services Does the Digital Token License Allow?
The license from Singapore’s central bank enables Circle Singapore to provide various services, including domestic and international money transfers within Singapore and services linked to digital payment tokens.
As the issuer of the second-largest stablecoin in terms of market capitalization, Circle is well-positioned for growth in the blockchain and web3 ecosystems in the Asian market. The license allows Circle to operate more confidently and with more support in this critical region.
Singapore is well-known for welcoming cryptocurrency companies wanting to expand into Asia due to its favorable regulatory environment, market access, and available talent. It provides a fertile ground for Circle’s stablecoin to develop and thrive.
“Singapore is integral to Circle’s global expansion and mission in raising global economic prosperity and through the frictionless exchange of value” said Jeremy Allaire, CEO and Co-Founder of Circle.
USDC market cap sitting at $28.66 billion | Source: Market Cap USDC on TradingView.com
The Future Of Digital Assets Regulation
Regulatory bodies have recently focused on the cryptocurrency industry, particularly in Europe and the US. This week alone, the US Securities and Exchange Commission has taken significant legal action against Binance and Coinbase, two of the industry’s largest companies.
However, Asia and the Middle East have shown more support to the cryptocurrency industry, with companies obtaining regulatory licenses in these markets. For instance, Hong Kong recently opened up licensing for its crypto exchange.
Singapore has a relatively progressive stance on digital assets and is working towards becoming a hub for innovation and cryptocurrency companies in the Asian market. With a reputable company like Circle now appropriately licensed to provide digital currency services, more people and businesses in Singapore may start using crypto and stablecoins for payments, trading, and other transactions.
Featured image from Bloomberg, chart from TradingView.com
