May 04, 2026
By Shubhii Verma
Hong Kong is becoming one of the busiest global routes for USDC-based cross-border payments, according to Circle CEO Jeremy Allaire. Circle is the company behind USDC, the world’s second-largest stablecoin, and it is now looking to expand further in the city as it seeks regulatory approval under Hong Kong’s new stablecoin framework.
Allaire said that data from the Circle Payments Network (CPN) shows Hong Kong is one of the most active destinations for international settlements using USDC. The CPN is a blockchain-based platform launched last year to help institutions move money across borders using stablecoins instead of traditional banking systems.
He explained that Hong Kong’s long-standing role as a global trade and financial hub makes it a natural fit for stablecoin adoption. Businesses involved in cross-border trade are increasingly using stablecoins for faster and more efficient payments, and Hong Kong sits at the center of many of these payment flows.
Because of this activity, Circle views Hong Kong as a highly important market. Allaire said the company is positive about the city’s upcoming stablecoin rules and hopes USDC will be approved as a foreign stablecoin that can operate legally in Hong Kong. However, he clarified that Circle has no plans to launch a Hong Kong dollar-backed stablecoin.
Circle has already started building partnerships in the region. In April, it announced a collaboration with Hong Kong-listed digital asset platform OSL Group to expand USDC availability on OSL’s services. Earlier, in 2024, Circle also signed an agreement with telecom provider HKT to explore blockchain-based loyalty programs for merchants using USDC.
HKT is also connected to Anchorpoint Financial, a joint venture led by Standard Chartered and supported by Animoca Brands. Along with HSBC, Anchorpoint recently became one of the first companies to receive a stablecoin issuer licence in Hong Kong. More licences are expected to be issued in the near future, according to the city’s financial officials.
Allaire believes that Hong Kong’s stablecoin market could eventually resemble the US market, where two or three major players dominate. For a stablecoin to succeed, he said it must easily connect local and global financial systems, maintain strong liquidity against US dollar stablecoins like USDC, and develop real use cases within the region.
He also noted that for Hong Kong to build a strong stablecoin ecosystem, it needs active participation from exchanges, over-the-counter markets, and deeper links to global payment networks.
While interest in blockchain is growing, Allaire added that many traditional financial firms are still in the early stages of adoption. He observed that countries with clear regulations tend to see faster institutional uptake.
Looking ahead, Allaire pointed to another emerging factor that could boost stablecoin usage: AI-driven digital agents. As these agents begin handling financial transactions, regulators may eventually introduce new rules such as “Know Your Agent” standards to track and verify them.
