The momentous event highlights Singapore's position as a crucial player in Circle's international growth strategy.
The affiliate company of a stablecoin issuer Circle, Circle Internet Singapore, recently secured a Major Payment Institution (MPI) license from Singapore's prime financial regulatory body, the Monetary Authority of Singapore (MAS).
The MPI license is a significant gain for Circle, the issuer of well-known stablecoins USD Coin (USDC) and Euro Coin (EUROC).
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The MPI license fosters the ability to facilitate digital token services and enable both local and international money transfers. This noteworthy development follows Circle's preliminary approval for the license in November.
Circle's identification of Singapore as its main Asian hub speaks volumes about the city-state's growing importance in the global fintech landscape. In the words of Jeremy Allaire, the co-founder, and CEO of Circle:
Singapore is integral to Circle’s global expansion.
Circle is not the only crypto-related company stepping foot in Singapore. Crypto.com also received the MPI license earlier this month after being given preliminary approval in June 2022.
Other holders of the prestigious MPI license encompass a range of financial service companies, including DBS Vickers, Paxos, Digital Treasures Center, Revolut, Fomo Pay, Hako, Independent Reserve, Metacomp, and Sparrow Tech.
In the stablecoin realm, Circle's USDC ranks second globally, falling just behind Tether (USDT). Despite its high standing, USDC's market share slipped from 34.88% to 23.05% over the previous year, with Tether seizing the lost ground.
However, the acquisition of the MPI license could pave the way for a change in this trend, strengthening Circle's position in the market.
Circle's acquisition of the MPI license from MAS reflects Singapore's growing significance in the fintech sector. This latest development underscores the city-state's attractiveness to global financial entities and further solidifies its standing as a major financial hub in Asia.
