Circle, the issuer of USDC, the second-largest stablecoin, is considering issuing a stablecoin in Japan. Jeremy Allaire, the CEO of Circle, believes that Japan will be a significant market for stablecoins in cross-border trade. This comes after Japan implemented rules overseeing stablecoin issuance on June 1. Circle is interested in forming partnerships in Japan, although no specific details were given. The legislation in Japan requires stablecoins to be pegged to the yen or another fiat currency and can only be issued by licensed banks, registered money transfer agents, and trust companies. Circle has been expanding its presence in Asia, recently obtaining a Major Payment Institution license in Singapore. Mitsubishi UFJ Financial Group, Japan’s largest bank, has also expressed interest in stablecoins with its Progmat Coin platform.
Key Points:
– Circle, the issuer of USDC, is considering issuing a stablecoin in Japan.
– Japan implemented rules overseeing stablecoin issuance on June 1.
– Stablecoins in Japan must be pegged to the yen or another fiat currency.
– Only licensed banks, registered money transfer agents, and trust companies can issue stablecoins in Japan.
– Circle has obtained a Major Payment Institution license in Singapore and is interested in forming partnerships in Japan.
Hot Take:
The interest from Circle and Mitsubishi UFJ Financial Group in issuing stablecoins in Japan reflects the growing importance of stablecoins in cross-border trade. With Japan implementing rules to regulate stablecoin issuance, it is clear that the country sees the potential benefits of these digital assets. If stablecoins become widely adopted in Japan, it could greatly impact the way cross-border transactions are conducted and provide new opportunities for businesses and individuals alike.
By
By
By
By