Circle chief considers issuing stablecoin in Japan: CoinDesk

Quick Take

  • Circle CEO Jeremy Allaire said the company is interested in partnerships in Japan.

  • Japan’s new stablecoin rules took effect last month, requiring stablecoin issuers to be licensed banks or agents.

Circle, the issuer of USDC, the second-largest stablecoin by market capitalization, is considering issuing a stablecoin in Japan.

Jeremy Allaire, co-founder and chief executive officer of Circle, said in a CoinDesk interview published Thursday that Japan will be a significant market if stablecoins become widely used in cross-border trade.

The bullish statement comes after the country’s rules overseeing stablecoin issuance took effect on June 1. The Circle chief did not give more details on potential stablecoin issuance, but said the company is interested in partnerships in the world’s third-largest economy.

Tough legislation

In June 2022, Japan’s parliament passed a bill for stablecoins, requiring the coins to be pegged to the yen or another fiat currency and stating that holders must have the right to redeem them at face value.


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The legislation clarifies that stablecoins can only be issued by licensed banks, registered money transfer agents and trust companies.

Circle has been expanding its presence in Asia. Last month, it obtained a Major Payment Institution license from the Monetary Authority of Singapore, allowing its affiliate Circle Internet Singapore to offer digital payment token services and cross-border and domestic money transfer services in the city-state.

Mitsubishi UFJ Financial Group, Japan’s biggest bank, has also shown interest in stablecoins, outlining in June its Progmat Coin platform that aims to enable the issuance and trading of stablecoins.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Timmy Shen is an Asia editor for The Block. Previously, he wrote about crypto and Web3 for Forkast.News from Taiwan after spending more than three years in Beijing covering finance and current affairs at Caixin Global and Chinese tech at TechNode. His China-related reporting has also appeared in The Guardian. When he's not chasing headlines, you'll find him savoring hot pot and shabu shabu in a Taipei local haunt. Timmy holds an MS degree from Columbia University Graduate School of Journalism. Send tips to [email protected] or get in touch on X/Telegram @timmyhmshen.


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