SBI Holdings, Inc. has formalised a Memorandum of Understanding (MOU) with Circle Internet Financial to facilitate the integration of USDC stablecoins in Japan.
Circle, recognised as the issuer of the stablecoin, USDC, and SBI will focus on circulating USDC, establishing a banking relationship, and promoting Circle’s Web3 Services within the Japanese market.
The move follows the Japanese government’s recent revision of the Payment Services Act on June 3, 2023, which aims to regulate stablecoins.
This regulatory adjustment is anticipated to encourage the issuance and usage of stablecoins in Japan, propelling the nation towards a Web3 economy.
The Revised Payment Services Act introduces a class of “collateralised” stablecoins.
Falling under this purview, USDC will remain is fully backed by highly liquid cash and cash-equivalent assets – redeemable 1 to 1 for U.S. dollars.
As of November 17, 2023, on-chain USDC transactions have surpassed $12.7 trillion.
A subsidiary of SBI Holding, SBI VC Trade Co., Ltd. is currently in the process of seeking approval for registration as an electronic payment instruments service to facilitate the circulation of USDC within Japan.
Another subsidiary, SBI Shinsei Bank, Limited, will provide banking services to Circle, ensuring access and liquidity for USDC within the Japanese market.
As part of SBI Group’s digital asset portfolio strategy, they plan to incorporate Circle’s Web3 Services, including its Programmable Wallet and smart contract management tools.
Circle, in its recent stride against fragmentation, introduced the Bridged USDC Standard on Ethereum Virtual Machine blockchains.
The company plans to extend support for this standard to modular EVM architectures, simplifying the deployment of new blockchains with default-compatible bridged USDC token contracts.
This month, Circle invested in Sei Network, a layer-1 blockchain.
The investment aligns with Circle’s broader vision to diversify the applications of its USD Coin (USDC) in the evolving digital landscape.