Expanding into Global Markets
Circle’s CEO, Jeremy Allaire, has argued with the USA SEC that stablecoins should not be classified as securities. Allaire revealed that 70% of USDC adoption occurs outside the USA, with Asia, Latin America, and Africa leading the way. This has prompted Circle’s intentions to expand into these markets.
Allaire predicts significant growth for stablecoins in the years 2024-2025 as regulations emerge in Japan, the UK, EU, Hong Kong, UAE, Singapore, and the USA.
Promoting Safe and Transparent Finance
Allaire emphasizes the importance of building on-chain dollars that are a powerful developer primitive, embracing the multichain, dynamic world of DeFi. He believes that these on-chain dollars should be built onshore and supervised to bank-grade risk management standards, ensuring their safety and transparency.
However, US lawmakers have shown strict opposition to stablecoins, with concerns raised by US Senator Elizabeth Warren. She recently reintroduced a bill with various regulations, including a requirement for crypto users to report transactions exceeding $10,000. These measures coincide with the US central bank’s aim to enhance transaction monitoring, introduce reversible transactions, and strengthen regulations for cryptocurrency companies.
Circle’s Partnership with Fuze Finance
Circle’s recent partnership with UAE-based Fuze Finance, MENA’s digital assets infrastructure provider, aims to expand the adoption of the USDC stablecoin in the MENA region. The collaboration involves working with new customers such as banks, fintechs, traditional enterprises, and Web3 firms. The agreement covers the Middle East, Africa, and Turkey, paving the way for increased use of USDC in these regions and the exploration of new use cases.
Miriam Kiwan, VP of Partnerships & Business Development, MENA for Circle, sees this collaboration as a significant milestone in enhancing financial inclusion and driving the adoption of full-reserve payment stablecoins across MENA. She aims to expand the accessibility and usage of USDC while fostering closer integration between regional and global finance.
Fuze Finance Co-Founder and CEO Mohammed Ali Yusuf shares Circle’s vision of creating more efficient financial services and delivering digital assets infrastructure for a more connected, inclusive economy. Yusuf’s company has made rapid strides in building digital assets infrastructure across the MENA region, including receiving a full VASP license from Dubai’s Virtual asset regulatory Authority and securing a seed round of $14 million.
Industry-wide Developments
The stablecoin market is experiencing significant growth, with approximately $124 billion worth of stablecoins in circulation. Tether’s USDT holds the largest share, followed by Circle-issued USDC. This growth is in line with the increasing interest in digital assets within the MENA region.
According to Checkout.com’s report on digital transformation in MENA for 2022, a significant percentage of individuals in the UAE already hold digital assets and express interest in using them for payments. This reflects the evolving financial landscape and the demand for more inclusive and flexible payment options.