Key Highlights:
- The collaboration aims to encourage the adoption of the USDC token in Japan.
- Japan competes with neighboring Asian countries in the stablecoin sector.
Circle Internet Financial Ltd., the issuer of the stablecoin USDC, has entered into a strategic agreement with SBI Holdings Inc. to boost the circulation of the USDC token in Japan. This move positions Japan in competition with financial hubs like Singapore and Hong Kong to establish itself as a prominent digital asset center.
In a press release published on Monday, SBI Holdings, a venture capital group and financial services provider, will collaborate with Circle to establish banking relationships and encourage the utilization of Circle’s web3 services in Japan. Web3 envisions an internet ecosystem built on cryptocurrency and blockchain technology.
Details of the SBI Holdings & Circle USDC Partnership
In the Memorandum of Understanding (MOU), Circle and SBI expressed their commitment to jointly work on the widespread adoption of USDC and the expansion of stablecoin use within Japan. Recognizing the regulatory challenges cryptocurrency companies face, both entities pledged to adhere to stablecoin-related regulations, engaging in effective communication with relevant authorities. SBI Holdings is awaiting approval for registration as an electronic payment instruments service, a crucial step to enable the circulation of USDC stablecoins within the country.
The Revised Payment Services Act, implemented by the Japanese government on June 3, 2023, outlines guidelines for stablecoins’ issuance and circulation in Japan, marking a significant step toward transitioning the country into a Web 3.0 economy. The revised act acknowledges collateralized stablecoins, emphasizing Circle’s USDC as fully backed by highly liquid cash and cash-equivalent assets.
Leadership Perspectives
Jeremy Allaire, CEO of Circle, expressed, “Our partnership with SBI Holdings aligns with our vision for the future of digital currencies and represents a significant milestone in Circle’s expansion plans in Japan and the Asia-Pacific region.”
Yoshitaka Kitao, Chairman and President of SBI Holdings, stated, “The SBI Group is dedicated to contributing to the realization of a new type of finance that leverages stablecoins.”
