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Circle, the company responsible for USD Coin (USDC), has entered into a strategic partnership with SBI Holdings, a Tokyo-based financial services firm, aimed at accelerating the adoption of USDC and Web3 services within Japan.
This collaboration was solidified through a memorandum of understanding (MOU) signed on November 27th, signifying a pivotal moment in the expansion of USDC into the Japanese market.
This partnership comes in the wake of Japan’s government’s revision of the Payment Services Act in June, which introduced regulatory frameworks for stablecoins.
Circle anticipates that these regulations will encourage the issuance and circulation of stablecoins in Japan, fostering the country’s transition towards a Web3 economy.
To facilitate the integration of USDC into the Japanese financial landscape, SBI Holdings is in the process of seeking registration as an electronic payment instruments service, pending approval from Japanese authorities.
Yoshitaka Kitao, CEO and President of SBI Holdings, expressed optimism about this move, seeing it as a crucial step towards the widespread adoption of stablecoins in Japan.
Circle’s CEO, Jeremey Allaire, emphasized the significance of this collaboration, describing it as a shared vision for the future of digital currency in Japan and Asia. It also marks an important milestone for Circle’s expansion plan in the region.
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Additionally, Circle and SBI will collaborate to promote the adoption of Circle’s comprehensive Web3 Services suite, offering end-to-end development, deployment, and operational platforms for Web3 applications across various blockchains, including domains such as gaming, culture, and consumer entertainment.
Allaire expressed enthusiasm about setting new standards in Japan’s financial sector through this collaboration with SBI.
To facilitate USDC access and liquidity for businesses and users in Japan, SBI Shinsei Bank, an SBI subsidiary, will provide banking services to Circle.
While Circle is headquartered in the United States, it’s noteworthy that a substantial 70% of USDC adoption occurs outside of the United States, with Asia leading this trend.
The demand for secure and transparent digital dollars is also on the rise in Latin America and Africa.
As of now, USDC is the second-largest stablecoin globally, with a market capitalization of $24.6 billion, as reported by CoinGecko.
This partnership with SBI Holdings is poised to play a pivotal role in furthering the growth and adoption of USDC in the Japanese market and beyond.
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