Circle, the stablecoin issuer of USD Coin (USDC), has partnered with SBI Holdings, a Tokyo-based financial services firm, to accelerate the adoption of USDC and Web3 services in Japan. The collaboration was formalized through a memorandum of understanding (MOU) signed on November 27. This agreement sets the foundation for the strategic expansion of USDC into the Japanese market, following the revision of the Payment Services Act by the Japanese government in June.
The recent regulatory changes in Japan aim to establish a regulatory framework specifically designed for stablecoins. Circle believes that these regulations will have a positive impact on the issuance and circulation of stablecoins in Japan, ultimately advancing the country’s transition towards a Web3 economy. As part of their efforts to bring USDC to Japan, SBI Holdings is seeking registration as an electronic payment instruments service, subject to approval by Japanese authorities. This initiative by SBI Holdings is expected to contribute to the wider adoption of stablecoins in the country.
Yoshitaka Kitao, CEO and President of SBI Holdings, expresses his optimism about the partnership, believing that it can pave the way for mass stablecoin adoption in Japan. He emphasizes that Japan is actively preparing for the full-scale introduction of stablecoins, positioning the country as a potential hub for the growth of digital currencies. The collaboration with Circle is seen as a significant step towards achieving this goal.
Jeremy Allaire, CEO of Circle, views the partnership as a representation of a shared vision for the future of digital currency in Japan and Asia. He describes it as a “milestone” for Circle and an integral part of their expansion plan in the region. Allaire expresses excitement about the collaboration, highlighting the opportunity to work together with SBI towards setting new standards in the financial sector in Japan. The cooperation between Circle and SBI Shinsei Bank, a subsidiary of SBI Holdings, will enable USDC access and liquidity for businesses and users in Japan.
While Circle is based in the United States, the majority of USDC adoption is taking place overseas, with Asia leading the way. Jeremy Allaire mentioned in August that 70% of USDC adoption occurs outside of the United States. Furthermore, there is a growing demand for safe and transparent digital dollars in regions such as Latin America and Africa. As of now, USDC holds the position of the second-largest stablecoin in the market, with a market cap of $24.6 billion, closely behind Tether (USDT), according to CoinGecko.
The partnership between Circle and SBI Holdings marks a significant collaboration aimed at promoting the adoption of USDC and Web3 services in Japan. With the support of regulatory developments in the country, Circle and SBI Holdings hope to contribute to Japan’s transition towards a Web3 economy and foster the widespread use of stablecoins. By joining forces, they strive to set new standards in the financial sector and establish Japan as a key player in the world of digital currencies.