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SBI Holdings, a prominent Japanese financial firm that believes greatly in Ripple and XRP, has partnered with the second-largest stablecoin issuer, Circle, to bring USD Coin (USDC) to Japan.
Circle disclosed details about the new coalition in a tweet today and on its official blog. Per the notification, the collaborative alliance is to revolutionize the financial landscape in Japan through the integration of USDC and Web3 Services.
“This partnership signifies a major leap in digital asset innovation and a strategic expansion for USDC in Asia,” the statement read.
Circle and SBI Holdings are joining forces to boost $USDC circulation and transform the financial landscape in Japan with $USDC and Web3 Services! This partnership signifies a major leap in digital asset innovation and a strategic expansion for $USDC in Asia.
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— Circle (@circle) November 27, 2023
USDC Coming to Japan
The report stated that this alliance that seeks to circulate USDC in Japan was established on the Japanese government’s Revised Payment Services Act on stablecoin regulation. The revised act specifically outlines provisions for stablecoins backed by fiat currency.
Circle prides itself on operating a fully backed stablecoin service. It claims its USDC has 100% support from “highly liquid cash and cash-equivalent assets,” ensuring USDC’s 1-to-1 redeemability for U.S. dollars.
Also, the firm stated that the reserves for USDC are separate from Circle’s operational funds and are safeguarded in leading financial institutions. As a result, the Ripple partner and Cirlce have formalized their collaboration by signing a Memorandum of Understanding (MOU) that outlines the coming of USDC to the Japanese market.
Per the official notification, the initial application of the MOU will see Circle and SBI Group broaden the utilization of stablecoins within Japan. Both entities have affirmed their commitment to stablecoin-related regulations, including open communication with relevant authorities.
Notably, SBI Holdings’ crypto trading arm, SBI VC Trade, is now actively pursuing registration “as an electronic payment instruments service” to facilitate the circulation of USDC stablecoins in Japan. The report noted that this endeavor is contingent upon approval from the relevant authorities.
In addition, SBI Shinsei Bank is set to offer banking services to Circle, facilitating access to USDC and enhancing liquidity for businesses and users based in Japan.
Furthermore, as an integral component of SBI’s crypto portfolio strategy, SBI Group will incorporate Circle’s Web3 Services solutions. This includes adopting features such as Programmable Wallet, smart contract management tools, and blockchain infrastructure.
SBI Holdings: Believer in Ripple and XRP
Before Circle, SBI Holdings maintained a robust partnership with payment firm Ripple for seven years. SBI has proactively advocated Ripple’s innovative solutions, particularly in cross-border payments.
In September, SBI commenced using XRP to ease international payment in countries such as Indonesia, the Philippines, and Vietnam.