SBI Holdings and Circle Join Forces to Drive Digital Currency Adoption in Japan
Japan, November 27, 2023 – In a landmark move, SBI Holdings, a prominent player in the Japanese financial sector, and Circle, the issuer of the world’s largest regulated stablecoin, USDC, have announced a Memorandum of Understanding (MOU) to propel digital currency innovation in Japan. This strategic alliance aims to expand the adoption of USDC, establish banking relations, and promote the utilisation of Circle’s cutting-edge Web3 Services within the Japanese market.
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.
Japan’s Regulatory Shift: Paving the Way for Stablecoins
The backdrop to this partnership is the Japanese government’s revision of the Payment Services Act in June 2023, which introduced regulations tailored explicitly to stablecoins. This regulatory framework is poised to catalyse the issuance and circulation of stablecoins in Japan while paving the way for the nation’s transition into a Web3 economy.
USDC: A Secure and Liquid Stablecoin
One of the standout features of the Revised Payment Services Act is its emphasis on “collateralised” stablecoins backed by legal tender. USDC, which Circle issues, takes this commitment a step further by being fully supported by highly liquid cash and cash-equivalent assets, offering users a secure and trustworthy digital currency experience. These assets are securely held apart from Circle’s operating funds in esteemed financial institutions, ensuring the safety of USDC holders. As of November 17, 2023, USDC has witnessed over $12.7 trillion in on-chain transactions, underscoring its growing importance in the digital currency.
Shared Objectives: Expanding USDC Circulation and Compliance
The MOU inked between SBI Holdings and Circle outlines their shared objectives, which include the initial focus on expanding USDC circulation and increasing the prevalence of stablecoins in Japan. Crucially, both companies are fully committed to complying with stablecoin-related regulations maintaining open lines of communication with relevant authorities. To facilitate the circulation of USDC in Japan, SBI VC Trade Co., Ltd. is actively pursuing registration as an electronic payment instruments service, subject to regulatory approval.
Empowering Japan’s Financial Landscape
Furthermore, SBI Shinsei Bank, Limited, will play a pivotal role by providing essential banking services to Circle. This move will enable businesses and users in Japan to access USDC and enhance liquidity within the market. As part of SBI Group’s overarching digital asset strategy, they will also incorporate Circle’s Web3 Services solutions, including the Programmable Wallet, blockchain infrastructure, and innovative contract management tools.
Vision for the Future: A Collaborative Milestone
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
Jeremy Allaire, CEO and co-founder of Circle expressed his excitement about the partnership. He stated, “Our partnership with SBI Holdings represents a shared vision for the future of digital currency and is a significant milestone in Circle’s expansion plans in Japan and the Asia Pacific. We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.”
Yoshitaka Kitao, Representative Director, Chairman, President & CEO of SBI Holdings, echoed this sentiment: “Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins. Under such circumstances, we are very pleased to have signed a basic agreement for a comprehensive business alliance with Circle, which manages and issues USDC, a stablecoin with a market capitalisation of nearly 4 trillion yen and used globally in more than 190 countries and to have taken the first step toward widespread adoption of stablecoins in Japan. SBI Group is committed to wholeheartedly working towards realising new financial possibilities using stablecoins.”
The Future of Finance: Japan’s Digital Currency Journey
This collaboration between SBI Holdings and Circle signifies a pivotal moment in Japan’s journey towards embracing digital currencies, marking a significant step towards the future of finance in the country. With regulatory support and the combined expertise of these two industry leaders, Japan is poised to play a leading role in the global digital currency landscape.
