Circle is latest recipient of Major Payment Institution license in Singapore

This month, the stablecoin issuer became the second crypto company to receive Singapore’s MPI license, following Crypto.com. Circle Internet Singapore, an affiliate of Circle, has been granted a Major Payment Institution (MPI) license by the Monetary Authority of Singapore (MAS). In November, Circle Singapore received provisional approval for the MPI license from MAS and established its office in Singapore in May.

With the MPI license, Circle is authorized to offer digital payment token services, as well as domestic and cross-border money transfer services. This information was announced in a statement released by Circle, the fintech firm that issues stablecoins such as USD Coin (USDC) and Euro Coin (EUROC).

The statement emphasizes Singapore as Circle’s primary hub in Asia, according to Circle’s co-founder and CEO, Jeremy Allaire. Circle’s acquisition of the MPI license follows Crypto.com, which received its MPI license on June 1, after receiving provisional approval in June 2022. Other holders of MPI licenses include DBS Vickers, Digital Treasures Center, Fomo Pay, Independent Reserve, Metacomp, Paxos, Revolut, Sparrow Tech, and Hako. Gemini has also expressed interest in expanding its presence in Singapore.

USDC, Circle’s stablecoin, is the world’s second-largest stablecoin, trailing behind Tether (USDT), but its market share has declined from 34.88% to 23.05% in the past year as of May, with Tether being its larger competitor.

A study conducted in 2022 revealed that six percent of the world’s crypto funds are based in Singapore, placing the country in third position globally, alongside Switzerland and Hong Kong, after the United States and the United Kingdom. Singapore has created a supportive environment for cryptocurrencies through legislation and demonstrates a high rate of crypto adoption.

Temasek, a state-owned investment fund, has also shown support for the crypto industry through investments in companies such as Animoca Brands and Amber Group. Additionally, it made a significant investment of $275 million in the bankrupt crypto exchange FTX.

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