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Circle, the company behind the popular USD Coin (USDC), has entered into a strategic partnership with Tokyo-based financial services firm SBI Holdings to facilitate the adoption of USDC and Web3 services in Japan. This collaboration follows the Japanese government’s recent revisions to the Payment Services Act, which have paved the way for the regulation of stablecoins in the country.
Strengthening USDC presence in Japan
Circle and SBI Holdings signed a memorandum of understanding (MOU) on November 27th, marking a significant step toward expanding the presence of USDC in the Japanese market. This partnership aims to stimulate the issuance and circulation of stablecoins in Japan and promote the country’s transition towards a Web3 economy. To achieve this, SBI Holdings is actively seeking registration as an electronic payment instruments service, pending approval from Japanese authorities.
SBI Holdings CEO and President, Yoshitaka Kitao, expressed optimism about the partnership, stating that it represents a pivotal moment in the advancement of stablecoin adoption in Japan. He said,
“Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins, and we are very pleased to have signed a basic agreement for a comprehensive business alliance with Circle.”
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.
— Circle (@circle) November 27, 2023
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A shared vision for digital currency in Japan and Asia
Circle CEO Jeremey Allaire echoed Kitao’s sentiments, emphasizing the shared vision between the two companies for the future of digital currency in Japan and Asia. Allaire sees this partnership as a significant milestone in Circle’s expansion strategy for the region.
In addition to expanding USDC adoption, Circle and SBI Holdings will collaborate to promote the adoption of Circle’s full-stack Web3 Services suite. This suite offers end-to-end development, deployment, and operations platforms for building and operating Web3 applications across various blockchains, including applications related to gaming, culture, and consumer entertainment.
Allaire expressed his enthusiasm for the collaboration, stating,
“We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.”
Banking services to support USDC access
As part of the partnership, SBI Shinsei Bank, a subsidiary of SBI Holdings, will provide banking services to Circle. This strategic move will enhance USDC access and liquidity for businesses and users based in Japan, further promoting the adoption of the stablecoin.
Circle, headquartered in the United States, has noted that approximately 70% of USDC adoption is taking place outside of the United States, with Asia leading the way. The demand for “safe, transparent digital dollars” is also strong in regions such as Latin America and Africa.
As of the latest data available, USD Coin (USDC) stands as the second-largest stablecoin globally, trailing only behind Tether (USDT). With a market capitalization of approximately $24.6 billion, USDC has gained significant traction in the rapidly evolving digital currency landscape.