Circle is latest recipient of Major Payment Institution license in Singapore

Circle’s Singapore affiliate, Circle Internet Singapore, has received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). Circle Singapore received in-principle MPI approval from MAS in November and opened its office in the city-state in May.

An MPI license allows Circle to offer digital payment token services and domestic and cross-border money transfer services, according to a statement released by the fintech firm, which is the issuer of the USD Coin (USDC) and Euro Coin (EUROC) stablecoins.

Circle has identified Singapore as its principal hub in Asia, according to the statement. Circle co-founder and CEO Jeremy Allaire said:

“Singapore is integral to Circle’s global expansion.”

Circle follows Crypto.com, which received its MPI license on June 1 after receiving approval in principle in June 2022. Other MPI license holders include DBS Vickers, Digital Treasures Center, Fomo Pay, Independent Reserve, Metacomp, Paxos, Revolut, Sparrow Tech and Hako. Gemini has also expressed interest in expanding to the city-state.

USDC is the world’s second-largest stablecoin, after Tether (USDT), but USDC has seen its market share fall from 34.88% to 23.05% in the last year as of May in favor of its larger competitor.

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Six percent of the world’s crypto funds are based in Singapore, a study found in 2022. It ties with Switzerland and Hong Kong for third place worldwide, behind the United States and the United Kingdom, for that criterion. Singapore provides a positive environment for crypto through legislation and has a high rate of crypto adoption.

Temasek, the state-owned investment fund, is also a supporter of the crypto industry, with investments in such companies as Animoca Brands and Amber Group. It was also a major backer of bankrupt crypto exchange FTX, with a $275 million investment.

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