Circle, the entity responsible for the stablecoin USD Coin (USDC), has joined forces with SBI Holdings, a financial services firm based in Tokyo, to accelerate the acceptance of USDC and Web3 services in Japan.
On November 27, Circle formalized a memorandum of understanding (MOU) with SBI Holdings, marking a significant move towards strategically expanding the presence of USDC in the Japanese market.
This collaboration aligns with the changes made by the Japanese government to the Payment Services Act in June, establishing regulations for stablecoins. Circle anticipates that these regulations will catalyze the issuance and circulation of stablecoins in Japan, propelling the nation towards a Web3 economy.
SBI Holdings is actively pursuing registration as an electronic payment instruments service to facilitate the introduction of USDC into Japan. This process is contingent on approval from Japanese authorities. Yoshitaka Kitao, CEO and President of SBI Holdings envisions this as a crucial step in fostering the widespread adoption of stablecoins in Japan.
Yoshitaka Kitao remarked, “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, Jeremey Allaire, emphasized that the partnership signifies a shared vision for the future of digital currency in Japan and Asia. He sees it as a milestone for 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, facilitating the development, deployment, and operation of Web3 apps across various blockchains.
SBI Shinsei Bank, a subsidiary of SBI, will play a pivotal role by offering banking services to Circle. This will enable access to USDC and provide liquidity for businesses and users in Japan.
Despite Circle being headquartered in the United States, the majority of USDC adoption, approximately 70%, is occurring overseas, with Asia leading the way, as noted by Jeremey Allaire in August. He also highlighted the robust demand for secure and transparent digital dollars in Latin America and Africa.
At present, USDC holds the position of the second-largest stablecoin, trailing behind Tether (USDT), with a market capitalization of $24.6 billion, according to CoinGecko.