Circle Internet Financial Plans Hong Kong Expansion Ahead of Anticipated Stablecoin Regulations

Circle Internet Financial, the firm behind the USDC stablecoin, recently disclosed its plans to expand into Hong Kong. This move comes as Circle prepares to launch an Initial Public Offering (IPO), with expectations of new stablecoin regulations.

Stablecoin issuer Circle plans to expand into Hong Kong and apply for a local license as the jurisdiction prepares new stablecoin regulations.

Circle’s Hong Kong Expansion Plans

According to a local news report, Circle’s CEO Jeremy Allaire highlighted Hong Kong as a key market for USDC. Hence, the CEO disclosed plans to hire more staff and establish Circle’s presence in the city.

As soon as a legal framework is established in the jurisdiction, Circle will apply for a local license. The Hong Kong government is notably aiming to submit the stablecoin issuer regime to the Legislative Council for review by the end of the year.

Several factors make Hong Kong favorable for the growth of stablecoins, such as the jurisdiction’s ability to settle USD transactions on the same day. As a result, Circle is also joining the competition over having a HKD stablecoin in the market, alongside Chinese e-commerce giant JD.com. Moreover, Circle could benefit from Hong Kong’s standing as a natural hub for stablecoin development and innovation.

Over the last two years, Hong Kong has undertaken several pro-crypto initiatives, welcoming the launch of spot Bitcoin and Ethereum ETFs. While demand for these investment instruments remained muted, it signals a strong regulatory acceptance for crypto investment products.

Beyond the Hong Kong expansion plans, Circle is also eyeing entry into other markets, such as Asia Pacific and Australia. This move follows the firm’s recent announcement of integrating into real-time payment systems in Brazil and Mexico.

As reported by CNF, the integration will allow businesses to directly access USDC from local financial institutions, eliminating the need for international wire transfers. It also enables companies in Brazil and Mexico to offer USDC to retail customers and use it for other corporate purposes.

In an earlier expansion play, Circle partnered with Hong Kong Telecom (HKT) to explore a blockchain-based customer loyalty solution. As reported by CNF, the partnership aims to inspire innovative engagement between Hong Kong’s retailers and consumers.

Circle’s IPO Preparations

In an interview with Bloomberg last week, Circle’s CEO stated that preparations for an initial public offering (IPO) are underway.

Several attempts have been made by Circle on its journey towards a potential IPO. The stablecoin issuer’s IPO plan started two years ago when it sought a merger with Concord Acquisition through the SPAC merger. However, the deal failed to materialize at that point. In January this year, Circle revived its intention and filed a draft statement to pursue its IPO plans in the U.S.

The company did not disclose specific details on the number of shares it plans to sell or the proposed price range. In his latest interview, Allaire mentioned that Circle’s stablecoin business does not require additional capital from the private market. A launch of IPO is a major step for Circle as it could help boost its global market presence.

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