April 28, 2026
By Shubhii Verma
Circle, the company behind the USDC stablecoin, has partnered with Hong Kong telecom giant HKT to explore how blockchain technology can improve loyalty reward programs for merchants in the city. The partnership was formalised through a memorandum of understanding (MOU) and focuses on building blockchain-based loyalty systems that are more secure, flexible and valuable for both businesses and consumers.
Circle is widely known in the crypto industry as the issuer of USDC, a US dollar-pegged stablecoin used globally for payments and digital transactions. HKT, on the other hand, is one of Hong Kong’s leading mobile network and digital service providers, offering telecom, payment and technology services to millions of users. Together, the two companies aim to bring blockchain innovation into the retail and merchant ecosystem of Hong Kong.
The main goal of this partnership is to redesign how loyalty points and rewards work. Traditional loyalty programs often suffer from issues such as limited usability, expiry of points, lack of transparency and fraud. By using blockchain and USDC, the new system aims to make rewards instant, secure and easier to redeem across different merchants and platforms.
Under this collaboration, Circle and HKT will work on building digital platforms that use blockchain to track, manage and distribute loyalty rewards. These platforms will help merchants adopt blockchain-based systems without needing deep technical knowledge. The focus will also be on creating simple, user-friendly interfaces so that customers can easily use and redeem their rewards through digital assets.
One of the key features of the proposed system is the use of USDC within loyalty programs. This means that rewards will be tied to a stable digital currency, helping ensure that their value does not fluctuate over time. Customers may be able to redeem rewards instantly, use them across multiple merchants and enjoy more flexibility compared to traditional point systems.
For merchants, blockchain-based loyalty programs could lead to better customer engagement, reduced fraud and improved data insights into customer behaviour. Blockchain records can provide transparent and tamper-proof tracking of reward transactions, helping businesses understand how customers interact with their brands.
For consumers, the system offers more convenience and control. Loyalty rewards could become more like digital assets that can be stored, transferred and redeemed easily, rather than being locked into a single brand’s ecosystem.
The partnership also supports Hong Kong’s broader push towards digital innovation and financial technology adoption. If successful, this model could expand beyond Hong Kong and integrate with other HKT services such as mobile wallets, payments and e-commerce platforms.
Circle and HKT said they will work closely with regulators to ensure the system meets compliance and security standards. The initiative signals a growing use of blockchain and stablecoins in everyday retail experiences, potentially changing how loyalty rewards function in the future.
