US-based digital payments company Circle is looking to plant its flag in Singapore as part of its global expansion. The announcement, made during the 2021 Singapore Fintech Festival, comes just days after the company launched its Circle Ventures fund to support early-stage blockchain projects and companies.

“You cannot build an always-on, global internet finance business without considering Singapore as a hub,” says Dante Disparte, Circle’s chief strategy officer and global head of policy.

The company, headquartered in Boston, Massachusetts, will hire a Singapore-based leadership team while working with local regulators to obtain applicable licences and registrations.

Circle is the principal operator of USD coin (USDC), a stablecoin pegged to the US dollar.

As it expands into Singapore, Circle says it will also look for partners to test stablecoin innovations in the local market as part of Lighthouse Project, with the Monetary Authority of Singapore (MAS) guiding the project design.

The Lighthouse Project aims to demonstrate how digital currencies, open payment systems, and innovation-forward fintech regulations “can solve business and regulatory challenges while fuelling economic growth and Web3 financial innovations”.

Earlier in the week, MAS managing director Ravi Menon said in a presentation at the fintech event that the Singapore central bank “frowns on cryptocurrencies or tokens as an investment asset for retail investors”, noting that tokens are subject to sharp speculative swings.

While there is a “no strong case” for a digital Singapore dollar at present, a central bank digital currency (CBDC) can bring potential benefits, according to Menon.

Still, the regulator welcomes Circle as the operator of one of the world’s fastest growing stablecoins. “We know they will bring innovation, investment and opportunity to Singapore and we look forward to supporting their Lighthouse Project,” MAS chief fintech officer Sopnendu Mohanty says.