• Circle will invest in Japanese yen stablecoins as part of its Asian expansion

  • Circle’s plans for Asia include establishing a regional headquarters in Singapore, launching a new venture arm, and investing in a Japanese yen stablecoin.

    Circle, the issuer of USD Coin (USDC) based in the United States, has set its sights on the thriving Asian crypto markets.

    Circle chose Singapore as the location for its regional headquarters in order to strengthen its presence in Asia. According to Circle CEO Jeremy Allaire’s interview with Bloomberg, the company is also establishing an investment arm called Circle Ventures. The first investment by the venture arm will be in a Japanese yen stablecoin.

    Allaire stated that the company sees significant opportunities in Asian markets, where he anticipates widespread adoption of stablecoins in borrowing and lending markets. He went on to say that the inflationary environment and the pursuit of yield would be the primary drivers of the market’s shift to stablecoins. In response to the company’s latest interest-yielding offering, “Circle Yield,” he stated:

    “While many people want to focus on people hedging by buying Bitcoin directly, we believe that an allocation into stablecoin yield will be extremely appealing for stewards of capital within corporations, corporate treasurers, and so on.”

    Circle is currently on a hiring binge in order to make USDC “one of the first global stablecoins to be licensed in Singapore.” The company is collaborating with the Singapore Monetary Authority to jumpstart the adoption of USDC for the country’s major businesses.

    Allaire was one of the first executives in the crypto industry to publicly support the Biden administration’s recent proposal to regulate stablecoin issuers as banks.

    “We kind of agree with that basic premise for something that could underpin a really broad range of payments and market activity,” he said.

    In a separate interview, he stated that the current steps would transform the current money transmission-focused regulations “to a much more fundamental infrastructure at the heart of what potentially the future of banking and capital markets look like.”

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