Circle has partnered with Hong Kong’s HKT to explore a blockchain-based customer loyalty program for merchants, expanding its presence in Asia.
Circle, the issuer of the USD Coin USDC $1.00 24h volatility: 0.0% Market cap: $61.62 B Vol. 24h: $6.06 B stablecoin, has signed a Memorandum of Understanding with Hong Kong telecom giant HKT. The partnership, announced on October 29, aims to explore the development of a blockchain-based customer loyalty program for Hong Kong merchants.
This new initiative underscores Circle’s commitment to bringing Web3 technology into consumer spaces, adding practical utility to its stablecoin ecosystem. Circle sees blockchain-powered loyalty systems as an avenue to help merchants engage with consumers on a more meaningful level, offering rewards that could streamline and personalize customer interactions.
In the official statement, Circle highlighted its suite of Web3 products. This includes programmable wallets, as tools that empower businesses to integrate digital assets and smart contracts into their existing systems. These wallets are designed to simplify crypto usage for companies and consumers alike. Interestingly, this programmable solution can be customized to match specific loyalty program needs, potentially transforming how rewards are issued and redeemed.
“Our expertise in Web3 technology aligns well with HKT’s established customer engagement tools,” said Monita Leung, CEO of HKT Digital Ventures. She stated that the partnership aims to create “unique loyalty solutions for merchants to deepen their connections with Hong Kong’s customers.”
Circle’s Expanding Reach
The partnership marks a larger effort by Circle to increase the adoption of USDC in Asia, a region that has shown growing interest in stablecoins and blockchain applications. Just last year, Circle co-founder and CEO Jeremy Allaire commented on the potential of Hong Kong as a regulatory sandbox, where blockchain innovations can take shape under an evolving legal framework.
Earlier in 2023, Circle expanded USDC’s accessibility in Japan through a partnership with Coincheck, further underscoring its focus on Asia. Recently, the company also joined forces with MHC Digital Group, a venture firm led by Australian investor Mark Carnegie, aiming to drive USDC adoption in Australia and the broader Asia-Pacific region.
Circle’s expansion efforts have received support from global payment giants as well, with Mastercard allowing USDC payments via its networks through Australian fintech Stables, setting the groundwork for further expansion.
USDC’s market cap of $35.3 billion places it second to Tether’s USDT USDT $1.00 24h volatility: 0.0% Market cap: $155.46 B Vol. 24h: $31.46 B in the stablecoin sector. However, Circle’s continuous expansion and partnerships aim to bring USDC into consumer and business applications beyond trading. Circle’s alliances include partnerships with prominent global firms, such as Sony’s Blockchain Solutions Lab.
With Circle’s blockchain technology at its core, this latest venture with HKT signals a future where stablecoin issuers could offer both a means of payment and a tool for customer retention.
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