Circle, the company behind the stablecoin USDC, has entered into a partnership with Hong Kong Telecom (HKT) to develop a blockchain-based customer loyalty solution for merchants in Hong Kong. The collaboration aims to utilize Web3 technology to create engaging experiences between consumers and merchants. The global loyalty market is valued at $5.57 billion, with 70% of consumers considering loyalty programs when making purchasing decisions. Circle’s Programmable Wallets will be integrated into existing consumer and enterprise applications to enable safer management of digital assets and smart contracts, enhancing the effectiveness of loyalty initiatives. Additionally, Circle has partnered with Thunes to improve stablecoin liquidity management. Since its launch in 2018, USDC has processed $17 trillion in volume and currently has a market cap of $34.69 billion.
In other news, Hong Kong is exploring new tax concessions for virtual assets. Christopher Hui, the Secretary for Financial Services and the Treasury, announced this development during Hong Kong Fintech Week. The city also plans to issue more licenses for cryptocurrency exchanges by the end of 2024. The Hong Kong Securities and Futures Commission (SFC) is in the process of reviewing digital asset exchanges for full licensing and is expected to publish a list of approved platforms soon. However, since the introduction of the license system in July, several crypto firms and exchanges have withdrawn their applications or had them returned for undisclosed reasons.