Circle Expands To Japan Market as USDC Takes Center Stage
Asia-Pacific Expansion, Circle's Milestone in Collaboration with SBI.
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Japan’s digital currency landscape continues to embrace the Web3 economy as SBI Holdings Japanese finance leader in asset management and blockchain technology has formalized a strategic collaboration with Circle, the company behind the world’s second-largest stablecoin USDC.
This partnership underscores the joint commitment of SBI Holdings and Circle to promote the adoption of digital currencies, with a particular focus on the USDC stablecoin, within the Japanese market.
Key aspects of the alliance include SBI Trade actively seeking approval to deal in USDC under electronic payment regulations formally. At the same time, SBI Shinsei Bank will provide banking infrastructure to Circle for simplified USDC integration by businesses and consumers across Japan.
USDC is a stablecoin backed 100% by highly liquid cash and cash-equivalent assets, redeemable 1 to 1 for US dollars. USDC reserves are held separately from Circle’s operational funds in leading financial institutions, ensuring the security and transparency of the stablecoin, according to the statement released by Circle.
Jeremy Allaire, CEO of Circle, expressed enthusiasm for the collaboration, stating,
“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 & CEO of SBI Holdings stated that,
“SBI Group is committed to wholeheartedly working towards realizing new financial possibilities using stablecoins.”
This collaboration comes when the Japanese government is actively regulating stablecoins. With the implementation of the Revised Payment Services Act in June 2023, the government aims to oversee stablecoins backed by legal tender. This regulatory step is expected to boost the issuance and use of stablecoins in Japan, pushing the nation deeper into the Web3 economy.