Circle and SBI Forge Path for USDC Triumph in Japan

Circle, the stablecoin issuer of USD Coin (USDC), has entered into a memorandum of understanding (MOU) with Tokyo-based financial services firm SBI Holdings on 27 November.

This collaboration aims to strategically expand the adoption of USDC and Web3 services in Japan.

The move comes in the wake of the Japanese government’s revision of the Payment Services Act in June, establishing regulations for stablecoins.

Circle sees this regulatory development as a catalyst for fostering the issuance and circulation of stablecoins in Japan, aligning with the country’s transition towards a Web3 economy.

Circle posted on X (formerly known as twitter) account:

In the process of introducing USDC into Japan, SBI Holdings seeks registration as an electronic payment instruments service, subject to approval by Japanese authorities.

SBI Holdings’ Initiatives

SBI Holdings CEO Yoshitaka Kitao anticipates this move as a step towards widespread stablecoin adoption in Japan.

“Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins, such as through the revised Payment Services Act implemented in June 2023. Under such circumstances, we are very pleased to have signed a basic agreement for a comprehensive business alliance with Circle, which manages and issues USDC, a stable coin with a market capitalisation of nearly 4 trillion yen and used globally in more than 190 countries, and to have taken the first step toward widespread adoption of stablecoins in Japan. SBI Group is committed to wholeheartedly working towards realising new financial possibilities using stablecoins”

Circle’s CEO Jeremy Allaire views the partnership as a shared vision for the future of digital currency in Japan and Asia.

He said:

“Our partnership with SBI Holdings represents a shared vision for the future of digital currency, and is a significant milestone in Circle’s expansion plans in Japan and Asia Pacific. We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.”

SBI Shinsei Bank, a subsidiary of SBI, will facilitate USDC access and liquidity for Japan-based businesses and users, supporting the collaborative effort.

USDC’s Worldwide Popularity

While Circle is based in the United States, it recognises that 70% of USDC adoption occurs overseas, with Asia leading the way.

The CEO notes strong demand for “safe, transparent digital dollars” not only in Asia but also in Latin America and Africa.

USDC currently holds the position of the second-largest stablecoin, with a market cap of $24.6 billion, trailing behind Tether (USDT), according to CoinGecko.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.