Circle CEO: We believe RMB stablecoins conceal enormous business opportunities, and we are optimistic that Hong Kong can become a cross-border payments hub.

According to a Reuters report, Circle CEO Jeremy Allaire said that as digital currencies become increasingly integrated into global trade and financial systems, Chinese yuan–backed stablecoins are coming into view as a “huge business opportunity.” To expand the yuan’s role in the global financial system, stablecoins have emerged as a new way to “export” currency by simplifying global payment flows. It is expected that China may launch a yuan stablecoin within the next three to five years, which also suggests that its strict regulatory stance toward digital assets may be poised for a major shift.

Circle CEO: Yuan stablecoins hide a huge business opportunity

Circle co-founder and CEO Jeremy Allaire said in an interview in Hong Kong that yuan stablecoins have significant development potential. He emphasized, “In an environment of currency competition, every country wants its own currency to have the most complete set of functions, and this is causing currency competition to gradually evolve into a contest of technology. ” He expects China to officially launch a yuan-reserved stablecoin in the next three to five years.

China’s tough regulatory stance is the biggest challenge

If the plan for yuan stablecoins comes to fruition, it will mark a major shift in China’s digital asset policy. Based on considerations of the stability of the financial system, earlier this January, Chinese authorities classified tokenized assets (RWA), stablecoins, air coins, and mining as high-risk illegal financial activities. However, given stablecoins’ advantages in offering faster, lower-cost transaction experiences on a global scale, whether future policy will loosen in order to support internationalization is also the issue the market is most focused on.

Hedging demand drives up USDC issuance

According to Circle’s quarterly financial report, as of the end of 2025, USDC—which is pegged to the U.S. dollar and is the world’s second-largest stablecoin—had a year-over-year circulation growth rate of as much as 72%, bringing its total size to $75.3 billion. Allaire revealed that after the outbreak of the Iran-Iraq war, as geopolitical risks surged rapidly, demand for “digital dollars” that can be easily moved increased significantly, driving growth of USDC trading volume by billions of dollars.

Focusing on Hong Kong as a cross-border payments hub, closely watching the U.S. “CLARITY Act”

Allaire further noted that as Hong Kong serves as a hub for international cross-border payments and settlement, Circle is optimistic about the development potential of Hong Kong dollar stablecoins and is seeking a major opportunity to integrate them into global payment platforms.

On the other hand, Circle is also at the center of U.S. cryptocurrency regulatory discussions. The market is closely watching the legislative developments of the U.S. “CLARITY Act” (CLARITY Act), especially whether the bill would restrict marketing by packaging “yield-bearing stablecoin” products as bank savings products. In response, Allaire believes that any marketing-related restrictions would have a much greater impact on stablecoin distributors than on issuers themselves.

(As the Hong Kong Monetary Authority announced stablecoin licenses today, the first batch of two institutions: HSBC and Standard Chartered, and the joint venture company with Animoca, have been approved.)

This article, Circle CEO: Yuan stablecoins hide a huge business opportunity, looks favorably on Hong Kong becoming a cross-border payments hub, first appeared on Lianxin ABMedia.