Circle chief considers issuing stablecoin in Japan: CoinDesk

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.

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.