Circle, the operator of the cryptocurrency USDC, plans to launch a stablecoin pegged to the Japanese yen. The launch will be conducted through the company's venture arm Circle Ventures. As part of expanding its presence in the Asian market, the company will also open an office in Singapore, Bloomberg has reported.
In Singapore, Circle intends to obtain a license from the local regulator. Circle is cooperating with the local monetary authority on a project to implement USDC for large city and state companies.
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Circle CEO Jeremy Allaire predicted the active introduction of stablecoins in the lending markets. In his view, the driver of such a transition will be investors' desire to hedge against inflation:
"While a lot of people want to focus on people hedging by buying Bitcoin directly, we think for stewards of capital within corporations and corporate treasurers and so on, that an allocation into stablecoin yield is actually going to be really, really attractive."
Circle has previously given its support to US president Joe Biden's administration's plans to regulate stablecoins issuers as banking institutions.