SBI Holdings and Circle Partner to Drive USDC and Web3 Adoption in Japan
SBI Holdings and Circle have partnered to promote the circulation of USDC and bolster Web3 services in Japan.
The collaboration, marked by a Memorandum of Understanding (MOU), aims to establish a banking relationship. Additionally, it seeks to navigate the regulatory landscape for the widespread use of stablecoins in Japan.
The Framework of SBI-Circle Collaboration
Under this MOU, SBI Holdings and Circle will focus on circulating USDC in Japan, adhering to the nation’s regulatory requirements. SBI VC Trade Co., Ltd., an arm of SBI Group, is pursuing registration as an electronic payment instruments service, pending regulatory approval, to facilitate this initiative.
The collaboration aligns with Japan’s revised Payment Services Act, enacted in June 2023, that regulates stablecoins and aims to boost their issuance and circulation in the country.
This act specifically emphasizes “collateralized” stablecoins, such as USDC, backed by highly liquid assets and offering a 1:1 redemption rate for U.S. dollars.
Expanding Access and Liquidity Through Banking Services
SBI Shinsei Bank Limited — part of the SBI Group, will provide essential banking services to Circle. This step would be crucial for ensuring USDC access and liquidity for businesses and users in Japan.
Additionally, SBI Group plans to integrate Circle’s Web3 Services, including Programmable Wallet, blockchain infrastructure, and smart contract management tools, into its digital asset strategy.
Yoshitaka Kitao, CEO of SBI Holdings, expressed enthusiasm for the agreement. He highlighted the potential of stablecoins to revolutionize Japan’s financial sector, aligning with the country’s evolving regulatory framework.
As Japan prepares for a more comprehensive embrace of stablecoins, this partnership stands ready to influence significantly. It is poised to play a key role in shaping the nation’s digital finance landscape.
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