Circle Partners with SBI Holdings to Advance USD Coin and Web3 Services Adoption in Japan
Circle, the renowned stablecoin issuer and brainchild behind USD Coin (USDC), has entered a strategic partnership with Tokyo-based financial services giant SBI Holdings in an effort to increase the adoption of $USDC and Web3 services within Japan.
An announcement made on November 27 disclosed that Circle had signed a memorandum of understanding (MOU) with SBI Holdings. The aim of this collaboration is to bolster the strategic expansion of $USDC in Japan, with a significant portion of the strategy centered on increasing the circulation of $USDC. This partnership signifies a groundbreaking move in digital asset innovation and places $USDC in a strategic position within the Asian market.
Japan’s Revised Payment Services Act and the Web3 Economy
This groundbreaking partnership follows Japan’s government revision of the Payment Services Act in June, which laid out the regulations for stablecoins. Circle’s perspective on the matter is that these regulatory advancements will stimulate issues and circulation of stablecoins within Japan, leading the country towards a Web3 economy.
SBI Holdings is now embarking on the necessary steps to register as an electronic payment instruments service as part of its effort to circulate USDC within Japan. This approval process must be greenlighted by Japanese authorities. CEO and President of SBI Holdings, Yoshitaka Kitao, eagerly anticipates this new development as a huge leap towards accelerating stablecoin adoption in Japan.
The Shared Vision for the Future of Digital Currency
“This partnership represents a shared vision for the future of digital currency in Japan and Asia, and is a milestone for Circle’s expansion plan into the region,” commented Jeremy Allaire, Circle’s CEO. “We are delighted to collaborate with SBI to set new benchmarks in Japan’s financial sector.”
SBI Shinsei Bank, an SBI subsidiary, will be providing a range of banking services to Circle to support accessibility and liquidity of USDC for businesses and users based in Japan, Circle announced.
Global Adoption of USDC
In spite of Circle’s base being in the United States, a whopping 70% of USDC adoption is taking place overseas. This was reported by Allaire in August, with Asia leading the forefront. In addition to Asia, “demand for safe, transparent digital dollars” is resoundingly strong in regions like Latin America and Africa, Allaire observed.
At present, USDC ranks as the second largest stablecoin, trailing behind Tether (USDT), commanding a whopping market cap of $24.6 billion, as per CoinGecko.
