Circle CEO predicts stablecoins will play major role in Hong Kong trade

Circle CEO Jeremy Allaire says stablecoins will become a critical part of Hong Kong’s business dealings as the region moves into more Web3 zones.

Jeremy Allaire said Circle (cUSDC) is targeting Hong Kong for a “global stablecoin network” that would make transactions cheaper and faster on markets operating through Hong Kong, according to an Oct. 30 report from the South China Morning Post.

“In emerging and developing markets… there are importers importing from Asia, and a large part of the trade flow is through Hong Kong,” Allaire said at Hong Kong FinTech Week 2024.

He said Hong Kong’s position as a trading hub makes it an attractive market for facilitating future trade deals with stablecoins.

“We’re seeing this demand on both sides… Companies are saying ‘this is better, it’s faster, it’s cheaper,'” Allaire said. he said.

At the event, Allaire announced two new partnership projects. These projects include Circle’s customer loyalty solutions partnership with Hong Kong Telecom and its collaboration with Thunes to process cross-border transactions using USDC.

Allaire, the world’s second-largest stablecoin issuer, sees Circle as the “global regulatory guinea pig for stablecoins” due to its regulatory compliance. While other institutions are considering using central bank digital currencies as the basis for a global chain economy, Allaire said stablecoins are already poised to fulfill that role.

“Our view is that this will become the regulated financial infrastructure around the world,” he said.

In July, the Hong Kong Monetary Authority published the results of a consultation paper on the proposal to introduce a regulatory regime for stablecoins. Following this, the HKMA is preparing to introduce a new stablecoin regulatory framework by 2025.

Meanwhile, Hong Kong’s own stablecoin issuer First Digital Trust announced on October 30 that it would expand First Digital USD to Solana as it seeks new ecosystems after launching products on Ethereum and BNB Chain.