SBI Holdings, a financial services firm headquartered in Tokyo, is collaborating with Circle, the stablecoin issuer of USD Coin (USDC), to increase the adoption of USDC and Web3 services in Japan.
Circle said it concluded a memorandum of understanding (MOU) with SBI Holdings on Nov. 27, which will underpin the strategic expansion of USDC into Japan.
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.
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— Circle (@circle) November 27, 2023
Meanwhile, Circle believes that the June revision of the Payment Services Act by the Japanese government to establish regulations for stablecoins will “stimulate the issuance and circulation of stablecoins in Japan and advance Japan’s transition towards a Web3 economy.”
However, to commence the circulation of USDC in Japan, SBI Holdings is pursuing authorization from Japanese authorities to register as an electronic payment instruments service.
President and CEO of SBI Holdings, Yoshitaka Kitao, believes that this will pave the way for widespread adoption of stablecoins in the nation.
“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.”
The partnership “represents a shared vision for the future of digital currency” in Japan and Asia, according to Circle CEO Jeremey Allaire, and is a “milestone” for Circle’s expansion strategy in the region.
Additionally, Circle will collaborate with SBI to encourage the use of its full-stack Web3 Services suite, which offers platforms for constructing, deploying, and operating Web3 applications across blockchains. Allaire advised, “Think games, culture, and consumer entertainment.”
USDC is coming to Japan – Circle and SBI Holdings begin partnership combining USDC distribution, banking and Web3 tech proliferation for the Japan market. Official announcement here, my take on this below: https://t.co/fXZ4b9QrER
Why is this such a big deal?
In June of this…
— Jeremy Allaire (@jerallaire) November 27, 2023
“We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan,” added Allaire.
According to Circle, SBI Shinsei Bank, a subsidiary of SBI, will furnish banking services to facilitate USDC access and liquidity for users and enterprises based in Japan.
Allaire remarked in August that although Circle is based in the United States, 70% of USDC adoption is occurring abroad, with Asia leading the way.
The Circle CEO further stated that “demand for safe, transparent digital dollars” is substantial in both Africa and Latin America.
According to CoinGecko, USDC is the second largest stablecoin currently, trailing Tether (USDT), with a market cap of $24.6 billion.
