Circle, the issuer of stablecoin USD Coin (USDC), has joined forces with Tokyo-based financial services firm SBI Holdings to accelerate the adoption of USDC and Web3 services in Japan.
Strategic Expansion:
Circle recently finalized a Memorandum of Understanding (MOU) with SBI Holdings on Nov. 27, marking a pivotal move in strategically expanding USDC into the Japanese market.
Regulatory Developments:
This collaboration aligns with the revised Payment Services Act by the Japanese government in June, introducing regulations for stablecoins. Circle anticipates these regulations will stimulate the issuance and circulation of stablecoins in Japan, fostering the country's shift towards a Web3 economy.
Initiating Circulation:
SBI Holdings aims to kickstart the circulation of USDC in Japan by seeking registration as an electronic payment instruments service, pending approval from Japanese authorities. CEO Yoshitaka Kitao envisions this as a significant step towards widespread stablecoin adoption in the country.
Comprehensive Business Alliance:
The partnership signifies a shared vision for the future of digital currency in Japan and Asia. Circle's CEO Jeremy Allaire views it as a milestone in their expansion plan into the region, setting new standards in the financial sector.
Banking Services Support:
SBI Shinsei Bank, a subsidiary of SBI Holdings, will provide banking services to Circle, facilitating USDC access and liquidity for businesses and users in Japan.
Global Adoption Trends:
Despite Circle being U.S.-based, 70% of USDC adoption occurs overseas, with Asia leading the way. Circle's August statement highlighted the strong demand for safe, transparent digital dollars in Latin America and Africa.
Market Position:
As the second-largest stablecoin, trailing behind Tether (USDT), USDC boasts a market cap of $24.6 billion, according to CoinGecko.
The collaboration between Circle and SBI Holdings marks a significant stride towards advancing the presence of USDC in Japan, reflecting a broader trend of global interest in stablecoins.
While this collaboration signals positive strides, it's crucial to monitor how regulatory approvals and market dynamics impact the envisioned expansion