Circle, the stablecoin issuer responsible for USD Coin (USDC), has forged a partnership with Tokyo-based financial services firm SBI Holdings, aiming to propel the adoption of USDC and Web3 services in Japan. In a recent announcement, Circle revealed the signing of a memorandum of understanding (MOU) with SBI Holdings on November 27, intending to facilitate the strategic expansion of USDC into Japan. Circle believes that Japan's revised Payment Services Act, established in June to devise stablecoin regulations, will encourage the issuance and circulation of Japanese stablecoins while driving Japan's shift towards a Web3 economy.
To initiate USDC's circulation within Japan, SBI Holdings seeks registration as an electronic payment instrument service, a step awaiting approval by Japanese authorities. Yoshitaka Kitao, CEO and President of SBI Holdings, expressed optimism, considering this move a significant stride toward the widespread adoption of stablecoins across the country. He emphasized Japan's progressive groundwork to fully incorporate stablecoins, highlighting the signing of a basic agreement with Circle for an extensive business partnership.
Circle's CEO, Jeremy Allaire, highlighted that this collaboration signifies a unified vision for the future of digital currencies in Japan and Asia, marking a crucial milestone in Circle's expansion initiatives within the region. Allaire expressed satisfaction in partnering with SBI to set new benchmarks in Japan's financial sector. Additionally, Circle mentioned that an SBI subsidiary, SBI Shinsei Bank, will furnish banking services to Circle, facilitating USDC accessibility and liquidity for Japanese businesses and users.
In a previous statement made in August, Allaire underscored that although Circle's headquarters reside in the United States, approximately 70% of USDC's adoption occurs internationally, with Asia leading this adoption trend. He also highlighted robust demand for a secure and transparent digital dollar in regions such as Latin America and Africa. Currently, USDC holds the position of the second-largest stablecoin by market capitalization, trailing Tether (USDT) with a market cap of $24.6 billion, according to CoinGecko.
