Circle Partners with SBI Holdings to Expand USDC Stablecoin in Japan
The issuer of the second largest stablecoin, USD Coin (USDC), Circle, has entered into a partnership agreement with Tokyo-based financial services company SBI Holdings. Both companies have committed to complying with regulations related to stablecoins and working closely with authorities. To circulate USDC stablecoins in Japan, SBI VC Trade Co., Ltd. is seeking registration as an electronic payment instrument service, subject to government approval.
The collaboration aims to adapt the token and Web3 services in Japan. The partnership comes amidst active efforts by Japanese authorities to establish legal standards for stablecoins.
“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.”
– Jeremy Allaire, CEO and co-founder of Circle
In July 2023, Circle announced its plans to launch a stablecoin in Japan, coinciding with new legislation that grants stablecoins the status of digital money. This move positions Japan as one of the first countries to establish a legal framework for regulating crypto-assets. Additionally, starting from May 6th, banks in Japan will be allowed to issue stablecoins pegged to different world currencies.
Hot Take: Partnership Expands USDC Influence in Japan
Circle’s partnership with SBI Holdings marks an important step towards expanding the presence of USD Coin (USDC) in Japan. By collaborating and complying with regulations, both companies are positioning themselves at the forefront of the evolving digital currency landscape. With Japanese authorities actively working on establishing legal standards for stablecoins, this partnership sets a precedent for other regions to follow suit. Furthermore, as banks gain the ability to issue stablecoins pegged to various world currencies, it opens up new opportunities for the adoption and use of stablecoins in Japan. Overall, this collaboration between Circle and SBI Holdings strengthens the position of USDC in the Japanese market.
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