Japan Embraces USDC and Web3 in Milestone Agreement with Circle

In a significant move, Circle and SBI Holdings have joined forces to introduce USDC and Web3 services in Japan. The agreement, sealed on Nov. 27 through a memorandum of understanding, hinges on SBI Holdings registering as an electronic payment instruments service provider in the country.

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

The collaboration aims to capitalize on the Japanese government’s June revision of the Payment Services Act to regulate stablecoins. Circle sees this as a boost for the issuance and circulation of stablecoins, facilitating Japan’s shift towards a Web3 economy.

SBI Holdings is actively pursuing registration as an electronic payment instruments service in Japan to introduce USDC. The success of this endeavor hinges on approval from Japanese authorities. SBI Holdings CEO Yoshitaka Kitao envisions this as a pivotal step towards widespread stablecoin adoption in Japan.

Furthermore, Jeremy Allaire, Circle’s CEO, expressed enthusiasm, emphasizing the partnership’s role in shaping the future of digital currency in Japan and Asia. This collaboration is a milestone in Circle’s regional expansion, aiming to set new standards in the Japanese financial sector.

Moreover, Circle revealed that SBI Shinsei Bank, a subsidiary of SBI Holdings, will provide banking services to Circle. This arrangement will facilitate USDC access and liquidity for businesses and users based in Japan.

SBI and Circle Partner for Japan Stablecoin Adoption

Despite Circle’s U.S. base, a significant 70% of USDC adoption is occurring overseas, with Asia leading the way, as highlighted by Allaire in August. He also noted strong demand for secure digital dollars in Latin America and Africa.

Currently, USDC holds the second position among stablecoins, trailing Tether (USDT) with a market cap of $24.6 billion, according to CoinGecko. The unfolding partnership and SBI Holdings’ regulatory progress have paved the way for significant USDC penetration into the Japanese market. This move will further cement its global position in stablecoins.

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