Stablecoin issuer Circle, the company behind USDC, has formed a partnership with SBI holdings to promote the adoption of Web3 services and USDC in the country of Japan. SBI Holdings is a Tokyo-based financial services company.
Circle announced a memorandum of understanding (MOU) with SBI Holdings on November 27, where they outlined the plans for a strategic expansion of USDC into the Japanese market. The recent development of the collaboration between these two firms follows the Japanese government’s revision of the Payment Services Act in June to establish clearer regulations for stablecoins. Circle believes that this move will encourage the issuance and circulation of stablecoin in Japan and will help in developing an environment where the country will transition towards a Web3 economy.
SBI is seeking approval from Japanese authorities to register the firm as an electronic payment instrument service. If permission is given, then SBI Holdings will be in a position to facilitate the introduction of USDC in Japan. SBI Holdings’ CEO and President, Yoshitaka Kitao, sees this collaboration as a significant step towards achieving widespread stablecoin adoption in Japan. Kitao stated:
“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’s CEO, Jeremy Allaire, also expressed his enthusiasm for the new partnership. He described it as a shared vision between two companies for the future of digital currency in Japan and Asia. He sees it as a milestone in Circle’s expansion plan into the region. Additionally, Circle and SBI will collaborate to promote the adoption of Circle’s full-stack Web3 Services suite.
The focus of the services will be based on developing and operating Web3 applications along with end-to-end operations and deployment. The domains that Circle is targeting are games, culture, and consumer entertainment.
Allaire highlighted the excitement about collaborating with SBI. He said: “We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan,”
SBI Shinsei Bank, a subsidiary of SBI, will play a pivotal role in providing banking services to Circle, facilitating USDC access and liquidity for businesses and users in Japan.
Despite being based in the United States, the adoption of Circle’s USDC has been mostly observed outside the country. 70% of Circle’s USDC adoption has been seen overseas, with Japan leading the way.
Allaire noted the strong demand for “safe, transparent digital dollars” not only in Asia but also in regions like Latin America and Africa. As of now, USDC holds the position of the second-largest stablecoin issuer after Tether (USDT), boasting a market cap of $24.6 billion, according to CoinMarketCap.
