Global regulatory alignment key to scaling stablecoins, says Circle

Fragmented regulations across jurisdictions have long been a challenge for the stablecoin industry. That could soon change.

“We are now seeing real momentum towards global coordination,” said Dante Disparte, chief strategy officer and head of Global Policy and Operations, Circle Internet Group.

Disparte cited the US Genius Act and European Union’s (EU) Markets in Crypto-Assets (Mica) as offering “distinct but converging blueprints for stablecoin regulation – anchored in transparency, full-reserve backing, redemption rights, and licensure”. 

Stablecoins are a type of digital currency designed to maintain a stable value by being pegged to traditional assets like the US dollar. 

Since 2023, regulatory frameworks governing stablecoins have been introduced across key markets. These include Mica, which came into effect fully in December 2024, and similar licensing measures in Hong Kong and Singapore. 

In July, US President Donald Trump signed the Genius Act, which requires stablecoins to be backed by liquid assets – such as US dollars and short-term Treasury bills – and for issuers to publicly disclose their reserves monthly.

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Through its licensed entities, US-headquartered Circle issues USDC, a stablecoin backed by US dollars and one of the top stablecoins by market cap, and its euro equivalent EURC. Both are compliant with Mica and Singapore’s stablecoin regulations. 

Circle launched its US initial public offering (IPO) in June – the first ever by a stablecoin issuer – raising US$1.2 billion (S$1.56 billion). It is now listed on Nasdaq.

Global stablecoin circulation doubled from Jan 2024 to June 2025, according to an analysis by US-based consulting firm McKinsey & Company, facilitating about US$30 billion worth of transactions daily.

Disparte noted that this rapid growth reflects “increasing institutional and market confidence” in blockchain-based digital currencies. He expects this growth trajectory to continue as more jurisdictions adopt clear regulatory frameworks.

Transparency and trust

A stable financial system is built on trust, said Disparte, and as digital currencies like stablecoins scale globally, that same principle holds.

He noted that Circle aims to meet local compliance requirements with delivering a unified and trusted user experience.

What this requires: “Close coordination with policymakers and embedding safeguards from day one.”

This is especially important now that stablecoins are now “past the proof-of-concept stage”, Disparte added.

With increasing regulatory clarity and more institutions adopting stablecoins, said Disparte, “the bridge between Web3 and traditional finance is actively being built”.

In finance, Web3 refers to the integration of blockchain technology, digital assets, and decentralised finance to create a more transparent, efficient, and user-controlled financial system. 

It removes traditional intermediaries such as banks and brokers, enabling direct peer-to-peer transactions.

Some use cases include: real-time treasury, cross-border payments, and programmable financial operations in sectors like trade, remittances, and e-commerce. 

Gaining trust from enterprises is equally important, Disparte said.

Referring to the company’s June IPO, he added: “(Circle believes) the transparency of being a public company further strengthens our reputation as a compliance-first firm.

“That is critical (as the) mainstream adoption of blockchain technology by large enterprises, who value safety and soundness, is becoming the long term growth driver for us,” he added. 

And it’s not just about moving more money faster. 

“The broader impact (of stablecoins) will not be measured solely in transaction volumes,” Disparte emphasised, “but in the resilience, inclusivity, and efficiency of tomorrow’s financial system.”

Real-world, real-time

Asia continues to be a leading hub for digital finance innovation, said Disparte.

He cited the region’s rapid progress since 2024 in embedding blockchain-based payments into everyday financial activity.

For example, in October, HSBC introduced its Tokenised Deposit Service (TDS) in Singapore, extending the blockchain-based payment capability beyond its initial launch in Hong Kong. 

The service enables 24/7 real-time and instant cross-border settlement for businesses. 

Disparte attributed Asia’s success to collaboration between public and private sectors, “where regulators act as strategic enablers and fintech innovation is treated as essential infrastructure”. 

Citing Singapore’s Stablecoin Regulatory Framework as an example, he noted that it’s “grounded in collaboration and risk awareness, enabling stablecoins like USDC to be issued and used in regulated environments.” 

Looking ahead, Disparte emphasised that the next phase is to connect these regional initiatives into a global network. 

This means standardising how stablecoins are managed, ensuring cross-border interoperability, and coordinating supervision, custody, and disclosure practices, he explained.

This was produced in partnership with the Monetary Authority of Singapore and the Global Finance & Technology Network.

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