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In a recent interview with the Hong Kong Economic Times, Chen Qinqi, Vice President of Circle for the Asia-Pacific region, confirmed that the stablecoin giant has no plans to issue an HKD-backed stablecoin. Instead, Circle will continue focusing on expanding the adoption of its U.S. dollar-backed stablecoin, USDC, and its euro-pegged stablecoin, EURC.
The comments come as Hong Kong experiences a surge of interest from fintech and crypto companies eager to secure licenses under the city’s Stablecoin Ordinance, which took effect on August 1. The framework, overseen by the Hong Kong Monetary Authority (HKMA), establishes strict operational, reserve, and transparency requirements for firms aiming to issue HKD-backed stablecoins or other fiat-pegged tokens.
According to Chen, institutional investors in Hong Kong can continue using USDC under existing frameworks, without needing additional regulatory approval related to the new ordinance.
“We are prioritizing expanding the reach of USDC and EURC across the Asia-Pacific region,” said Chen. “Our focus remains on ensuring liquidity, compliance, and trust across all Circle-backed assets.”
Since introducing the Stablecoin Ordinance, Hong Kong has emerged as one of Asia’s most active regulatory hubs for digital asset innovation. The legislation aims to position the city as a global leader in regulated stablecoin issuance, particularly for HKD-backed stablecoins.
The ordinance provides a comprehensive licensing system under which firms must maintain transparent reserves, conduct third-party audits, and meet consumer protection standards. According to CoinDesk, more than a dozen firms including both domestic and international issuers have expressed interest in applying for an HKD-backed stablecoin license.
However, Circle’s decision not to pursue an HKD-pegged token suggests a cautious approach. The firm currently holds a digital payment token license in Singapore and has indicated it is evaluating further regional expansion opportunities.
In November, Circle CEO Jeremy Allaire hinted at possible growth into Hong Kong, saying the company is “exploring partnerships and hiring local talent to deepen market engagement.” Still, Chen Qinqi clarified that no HKD-backed stablecoin is in the pipeline and that Circle is still assessing potential office locations in the city.
“We continue to evaluate market conditions and the evolving regulatory landscape,” he said, declining to comment on whether Circle had filed any licensing applications.
While Circle is opting out of launching an HKD-backed stablecoin, it remains one of the largest players in the global stablecoin market. According to DeFiLlama, USDC is currently the second-largest stablecoin by market capitalization, trailing only Tether’s USDT. As of early October, USDC’s market cap stands at approximately $75.28 billion, reflecting a 0.41% daily growth rate notably faster than USDT’s 0.06%.
Meanwhile, Circle’s EURC remains the leading euro-backed stablecoin, boasting a market cap of $266.5 million, accounting for over 45% of the entire euro-pegged stablecoin market.
However, when compared to non-USD stablecoins globally, EURC still trails behind Russia’s ruble-backed A7A5, which dominates more than 40% of that segment. Circle would need an additional $213 million in market capitalization for EURC to overtake A7A5 as the largest non-USD pegged stablecoin.
Despite these market dynamics, analysts expect Circle to maintain a strategic advantage through its regulatory-first approach. “Circle’s conservative expansion strategy reinforces its reputation as a compliant and institutionally trusted issuer,” said Yvonne Law, fintech researcher at Asia Crypto Journal.
The broader stablecoin market has surged past $300 billion in total capitalization, according to JPMorgan’s latest report, which projects the sector could reach $2 trillion by 2027. Analysts say this growth will be driven by regulatory clarity and increasing institutional demand both key factors in Hong Kong’s new push for HKD-backed stablecoin development.
“Hong Kong’s clear framework gives legitimacy to stablecoins pegged to its local currency,” said Henry Chung, digital assets policy expert at HK FinTech Association. “While Circle may not be entering the HKD space yet, their ongoing presence in the region will likely support broader ecosystem maturity.”
Still, competition is fierce. Regional startups are already testing HKD-pegged prototypes, and financial institutions are working closely with the HKMA to define interoperability standards. “Whoever achieves regulatory approval first for an HKD-backed stablecoin will have a strong first-mover advantage,” Chung added.
For now, Circle’s refusal to issue an HKD-backed stablecoin reflects a strategic prioritization of scalability and compliance over rapid market entry. By strengthening its foothold with USDC and EURC, the company appears focused on consolidating leadership in already-established markets before expanding into Hong Kong’s emerging stablecoin sector.
Still, with regulatory momentum accelerating and Hong Kong’s government keen on becoming a digital asset hub, industry observers believe Circle could eventually revisit its stance.
As Allaire put it during an earlier media appearance: “Our goal is to bridge traditional finance and blockchain infrastructure globally and Hong Kong is a market we cannot ignore forever.”
