CEO of Circle, Jeremy Allaire, highlighted the growing importance of stablecoins in Hong Kong’s trade settlements as the region increasingly embraces Web3 technologies.

Speaking at Hong Kong FinTech Week 2024, Allaire emphasized that Circle’s USD Coin (USDC) aims to leverage Hong Kong’s strategic position to facilitate cheaper and faster transactions for markets trading through the region.

“In emerging and developing markets, many importers are sourcing goods from Asia, and a significant portion of this trade flow is settled via Hong Kong,” Allaire noted. “Hong Kong’s role as a trade hub makes it an ideal market for future trade settlements using stablecoins.”

Allaire pointed out the demand from firms on both sides of the trade, stating, “The firms are recognizing that this method is better, faster, and cheaper.”

Partnership Projects Announced

During the event, Allaire announced two significant partnership projects. Circle is collaborating with Hong Kong Telecom to develop customer loyalty solutions and working with Thunes to facilitate cross-border transactions using USDC.

Circle’s Regulatory Compliance

As the second-largest issuer of stablecoins globally, Allaire described Circle as the “global regulatory guinea pig for stablecoins” due to its adherence to regulatory standards. While some institutions are focusing on central bank digital currencies (CBDCs) for a global on-chain economy, Allaire believes stablecoins are well-positioned to fulfill this role.

“Our view is that this is going to become regulated financial infrastructure everywhere in the world,” Allaire said.

Regulatory Developments in Hong Kong

In July, the Hong Kong Monetary Authority (HKMA) published the results of a consultation paper proposing a regulatory framework for stablecoins. The HKMA plans to introduce this new regulatory regime by 2025.

Meanwhile, Hong Kong-based stablecoin issuer First Digital Trust announced on Oct. 30 that it is expanding its First Digital USD (FDUSD) to the Solana blockchain, building on its existing products on Ethereum and BNB Chain.

Stay updated with the latest developments in the cryptocurrency world on Global Crypto News.

#DeFiProjects #CryptoInvestor #StableCoin

Post Views: 13