Circle Partners with SBI Holdings to Boost USDC Adoption in Japan
Circle, the issuer of the USDC stablecoin, has entered into a partnership with SBI Holdings, a Japanese securities and banking giant, with the aim of increasing the circulation of USDC in Japan. The agreement, outlined in a memorandum of understanding (MOU), requires SBI Holdings to register as an electronic payment services provider in Japan.
Expanding USDC into Japan
Circle recently announced that it has completed an MOU with SBI Holdings to strategically expand the adoption of USDC in Japan. This move comes after the Japanese government introduced regulations for stablecoins through the revised Payments Services Act. Circle believes that these regulations will stimulate the issuance and usage of stablecoins in Japan, accelerating the country’s transition into a Web3 economy.
“SBI Holdings, Inc. (Head Office: Minato-ku, Tokyo; Representative Director, Chairman, President & CEO Yoshitaka Kitao; hereinafter “the Company”) hereby announces that it has concluded a Memorandum of Understanding (hereinafter “the MOU”) with Circle Internet Financial to circulate USDC stablecoins, establish a banking relationship and promote the use of Circle’s Web3 Services in Japan.”
Promoting Stablecoin Adoption
In order to facilitate USDC circulation in Japan, SBI Holdings must register as an electronic payment instrument service and obtain approval from Japanese regulatory authorities. SBI Holdings’ CEO and president, Yoshitaka Kitao, hopes that this partnership will encourage widespread adoption of stablecoins 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 and to have taken the first step toward widespread adoption of stablecoins in Japan.”
Circle’s CEO, Jeremy Allaire, expressed enthusiasm about the partnership with SBI Holdings, describing it as a representation of a shared vision for the future of digital currency in Japan and Asia. He sees this collaboration as a significant milestone for Circle’s expansion plans in Japan and the Asia Pacific region. Circle will work closely with SBI Holdings to promote the adoption of Circle’s full-stack Web3 services suite.
“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 the Asia Pacific. We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.”
Banking Services and Access to USDC
SBI Shinsei Bank, a subsidiary of SBI Holdings, will provide banking services to Circle, enabling users and businesses in Japan to access USDC and liquidity. Additionally, as part of SBI Group’s digital asset portfolio strategy, they will adopt Circle’s Web3 Services solutions such as Programmable Wallet, blockchain infrastructure, and smart contract management tools.
“SBI Shinsei Bank, Limited will also provide banking services to Circle. This will enable USDC access and liquidity for Japan-based businesses and users. Moreover, as part of SBI Group’s digital asset portfolio strategy, SBI Group will also adopt Circle’s Web3 Services solutions such as Programmable Wallet, blockchain infrastructure, and smart contract management tools.”
USDC Adoption Overseas
While Circle is based in the United States, CEO Jeremy Allaire notes that 70% of USDC adoption occurs outside of the country, with Asia leading the way. He also mentioned strong demand for safe and transparent digital dollars in regions like Africa and Latin America. With a market capitalization of over $24 billion, USDC is the second-largest stablecoin, after Tether.
Hot Take: Circle and SBI Holdings Partner to Drive USDC Adoption in Japan
Circle’s partnership with SBI Holdings marks an important step towards increasing the use of USDC in Japan. By leveraging SBI Holding’s reputation and influence in the Japanese financial sector, Circle aims to drive widespread adoption of stablecoins in the country. This collaboration aligns with Japan’s regulatory efforts to establish a framework for stablecoins. As demand for digital currencies continues to rise globally, this partnership sets new standards for the financial sector in Japan and paves the way for further expansion of Circle’s Web3 services suite.
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