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Circle, the issuer of the second largest stablecoin by capitalization, USD Coin (USDC), has entered into a partnership agreement with Tokyo-based financial services company SBI Holdings.
SBI Group and Circle have also committed to properly complying with regulations related to stablecoins, including communication with authorities. To circulate USDC stablecoins in Japan, SBI VC Trade Co., Ltd. (head office: Minato-ku, Tokyo) is seeking registration as an electronic payment instrument service, which is subject to government approval.
The goal of the collaboration is to adapt the token and its own Web3 services in Japan, Circle says on its website. The parties came to an agreement against the backdrop of active work by the Japanese authorities on the formation of legal standards for stablecoins.
According to Jeremy Allaire, CEO and co-founder of Circle,
“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.”
See Also: Circle Introduces ‘Bridged USDC Standard’ To Enhance Network Deployments
Earlier, in July 2023, the Circle team announced plans to launch a stablecoin in Japan. Under new Japanese legislation, stablecoins are given the status of digital money.
Jeremy added that the adopted document is an important step towards Japan becoming one of the first countries to prepare a legal framework for regulating such crypto-assets.
At the same time, transactions with stablecoins linked to rates of currencies other than the yen, such as USDT, are prohibited in Japan. From May 6, this ban will be lifted and banks will be able to issue stablecoins pegged to different world currencies.