Stablecoin issuer Circle announced on Tuesday that it had signed a Memorandum of Understanding (MOU) with HKT, a major player in technology, media, and telecommunications.

The main objective of this collaboration is to explore opportunities for creating blockchain-based loyalty solutions tailored to Hong Kong’s merchant landscape.

Circle-HKT Collaboration

According to the blog post, Circle’s expertise in Web3 services, combined with HKT’s merchant network and customer engagement resources, will allow the two companies to develop Web3-powered loyalty solutions to improve consumer interactions with merchants, potentially creating more interactive engagement experiences.

In an official statement, Jeremy Allaire, co-founder and CEO of Circle, said:

“We are excited to collaborate with HKT to bring our Web3 Services to the forefront of customer loyalty innovation. This collaboration is a testament to our commitment to helping businesses unlock the potential of blockchain technology to create value-driven customer experiences, redefining loyalty programs, and providing merchants with the tools they need to thrive in the digital economy.”

Well-known companies like American Express and Marriott have seen notable engagement and revenue per customer, partly due to the strength of their loyalty offerings. These types of programs have also become popular with Gen Zs and millennials in Hong Kong. However, consumer expectations around them have shifted over time.

Circle cited a Statista report stating that the global loyalty market is valued at approximately $5.57 billion, with 70% of consumers indicating that loyalty programs play a significant role in their purchase decisions.

Recognizing the advantages of on-chain loyalty programs over traditional methods, the crypt