Circle Denies Launching HKD-Pegged Coin, Eyes Expansion of USDC, EURC

TLDR

• Circle has no plans to issue a Hong Kong dollar-backed stablecoin at this time.
• The company is focusing on expanding its USDC and EURC stablecoins in global markets.
• Institutional investors can use Circle’s USDC in Hong Kong without requiring additional regulatory approval.
• The company holds a license in Singapore and is considering applying for one in Hong Kong.
• Circle leads the market in euro-backed stablecoins, with EURC holding a significant market share.

Circle has dismissed speculation that it plans to launch a stablecoin backed by the Hong Kong dollar. Instead, the company is prioritizing its U.S. dollar-pegged stablecoin, USDC, and euro-backed EURC. The announcement follows rising interest from firms after Hong Kong’s new Stablecoin Ordinance took effect.

Circle Confirms No Extra Steps for USDC Use

Circle confirmed that institutional investors in Hong Kong can access USDC without facing extra regulatory steps. Vice President Chen Qinqi stated,

This provides clarity for institutions aiming to adopt USDC within the region.

The company holds a license from the Singaporean authorities and operates in multiple jurisdictions worldwide. However, Circle has no current license under the new Hong Kong regime. The firm is evaluating opportunities but remains cautious with its regulatory approach in the city.

Circle emphasized that retail users in Hong Kong must access USDC through its approved partners. Meanwhile, institutional investors can directly obtain USDC from Circle or via licensed associates. This distribution model aligns with Circle’s compliance-driven strategy.

EURC Dominates Euro Stablecoin Market with $266.5M

Circle’s euro-pegged stablecoin, EURC, leads the euro-backed market with a market cap of $266.5 million. This figure accounts for over 45% of the total euro stablecoin market, currently valued at $570 million. EURC continues to see adoption growth, though still trails other non-USD stablecoins globally.

Data shows that EURC requires an additional $213 million in market capitalization to surpass the ruble-backed A7A5 stablecoin. A7A5 leads the non-USD stablecoin sector, with a market dominance of more than 40%. Circle’s current position highlights its influence in both dollar and euro markets.

Despite intense competition, Circle remains the most prominent issuer among euro-backed tokens. Its commitment to regulated expansion underlines a long-term strategy in multiple regions. The company continues to monitor global demand and regulatory developments.

No Immediate Plans for HKD Stablecoin, but Collaboration Open

Circle clarified that it has no active plans to issue a Hong Kong dollar stablecoin. However, the firm is open to collaborating with local entities. Chen Qinqi said,

Although CEO Jeremy Allaire hinted at a possible branch in Hong Kong, no office has been opened yet. The company is still assessing office locations and the viability of license applications. Chen did not confirm any active license submissions under the current ordinance.

Circle remains focused on enhancing USDC and EURC’s reach rather than launching new fiat-backed tokens. This decision aligns with its cautious expansion strategy in regulated markets. For now, Circle is prioritizing strategic growth over introducing new products.

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