Circle, the issuer of the USDC stablecoin, has received its Major Payment Institution (MPI) license for digital payment token services in Singapore. The company had been issued an in-principle approval in November 2022, and the Monetary Authority of Singapore (MAS) has now granted Circle the license to offer digital payment token services, cross-border money transfer services, and domestic money transfer services in Singapore. Circle Singapore is an affiliate of Circle Internet Financial, the parent company of USDC. While commenting on the development, Circle’s CEO, Jeremy Allaire, stated that Singapore is integral to Circle’s global expansion and that the company remains committed to advancing fintech innovation, uplifting emerging technology and fintech sectors, and creating business and career opportunities for technology and financial industry talent in Singapore.
However, Circle’s USDC stablecoin has seen a dip in market cap due to the US banking crisis, with Tether’s USDT becoming the largest stablecoin by market cap in recent months. Nevertheless, the stablecoin regulation proposed by Singapore’s MAS last year, which introduced capital and reserve requirements for issuers and aims to ban users from some crypto-related activities like staking and lending, could contribute to increased stability for the industry.
In conclusion, Circle’s digital token license in Singapore is a step towards expanding its cryptocurrency services in Southeast Asia. This move will enable Circle to provide digital payment token services and transfer money across borders, facilitating more seamless financial transactions in Singapore and the surrounding region.