The arrangement was reached in a memorandum of understanding, but SBI Holdings needs to register as the nation’s provider of services for electronic payment instruments first.
To increase the use of USD Coin (USDC) and Web3 services in Japan, Circle, the stablecoin issuer behind USD Coin, is collaborating with SBI Holdings, a financial services company located in Tokyo.
According to Circle, on November 27, it signed an MOU with SBI Holdings that would support USDC’s strategic entry into Japan.
It coincides with the June revision of the Payment Services Act by the Japanese government, which set stablecoin laws. According to Circle, these revisions would progress Japan’s transition to a Web3 economy by encouraging the issue and circulation of stablecoins in the country.
SBI Holdings is requesting registration as an electronic payment instruments provider in order to start the circulation of USDC into Japan; this request is pending permission from Japanese authorities.
Yoshitaka Kitao, president and CEO of SBI Holdings, believes it will be a step toward the widespread acceptance of stablecoins in the nation.
“Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins [and] we are very pleased to have signed a basic agreement for a comprehensive business alliance with Circle.”
The cooperation “represents a shared vision for the future of digital currency” in Japan and Asia, according to Circle CEO Jeremey Allaire, who also called it a “milestone” for the company’s entry into the area.
In order to encourage the use of its full-stack Web3 Services suite, which offers end-to-end development, deployment, and operations platforms for creating and managing Web3 apps across blockchains, he continued, Circle will also collaborate with SBI. Allaire stated, “Think games, culture, and consumer entertainment.”
“We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan,” said Allaire.
According to Circle, SBI Shinsei Bank, an SBI affiliate, will offer banking services to Circle in order to facilitate USDC access and liquidity for consumers and businesses located in Japan.
Despite the fact that Circle is headquartered in the US, Allaire reported in August that 70% of USDC adoption is occurring abroad, with Asia leading the way.
The Circle CEO continued, “Demand for safe, transparent digital dollars” is especially high in Latin America and Africa.
With a market capitalization of $24.6 billion, USDC is presently the second-largest stablecoin, trailing only Tether (USDT), according to CoinGecko.
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