USDC issuer Circle receives a digital token licence in Singapore

Key takeaways

Circle has received its Major Payment Institution (MPI) license for digital payment token services in Singapore.

The company was first issued an in-principle approval in November 2022. 

Circle receives a digital token licence in Singapore

Circle, the company that issues the USDC stablecoin, announced on Wednesday, June 7th, that it has received its Major Payment Institution (MPI) license for digital payment token services in Singapore.

This latest cryptocurrency news comes after the company obtained in-principle approval last November.

According to the company, the license issued by the Monetary Authority of Singapore (MAS) allows it to offer digital payment token services, cross-border money transfer services and domestic money transfer services in Singapore. 

While commenting on this latest development, Jeremy Allaire, the CEO of Circle, said;

“Singapore is integral to Circle’s global expansion and mission in raising global economic prosperity and through the frictionless exchange of value. We are honored to receive the MPI license from MAS, and we remain committed to being a part of Singapore’s dynamic economy by advancing the future of financial technology innovations in the city-state, uplifting its emerging technology and fintech sector, and creating business and career opportunities for its technology and financial industry talent.”

Circle Singapore is an affiliate of Circle Internet Financial, the company that issues the USDC stablecoin. 

Circle falls behind Tether’s USDT

Circle has seen its USDC stablecoin take a hit this year due to the banking crisis in the United States. As the second-largest stablecoin by market cap, USDC has fallen behind Tether’s USDT in recent months.

At the moment, Tether’s USDT stablecoin has a market cap of $80.2 billion, more than twice that of USDC ($32.75 billion). 

Singapore’s MAS proposed stablecoin regulation last year, which introduced capital and reserve requirements for issuers. The regulatory agency also seeks to ban users from some crypto-related activities like staking and lending.