Circle seeks to expand USDC presence in Japan with SBI Holdings
Quick Take
- SBI is seeking to register in Japan to help circulate USDC stablecoins, with SBI Shinsei Bank set to offer banking services for Circle.
Circle, issuer of the USDC stablecoin, partnered with Japanese securities and banking giant SBI Holdings to expand its presence in Japan.
In a statement released on Monday, Circle said it signed a Memorandum of Understanding with SBI Holdings, which “includes SBI Group and Circle initially working towards the circulation of USDC and expanding the use of stablecoins in Japan.”
SBI VC Trade is currently seeking to register in the country as an electronic payment instruments service in an attempt to circulate USDC stablecoins within Japan — the world’s third-largest economy that’s projected to slip to fourth in the world this year according to the estimates of the International Monetary Fund.
SBI Shinsei Bank will also provide banking services to Circle, according to the statement. “This will enable USDC access and liquidity for Japan-based businesses and users,” Circle said in the statement. “Moreover, as part of SBI Group’s digital asset portfolio strategy, SBI Group will also adopt Circle’s Web3 Services solutions such as Programmable Wallet, blockchain infrastructure and smart contract management tools.”
Jeremy Allaire, CEO and co-founder of Circle, said the 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 Asia Pacific.”
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Japan passed stablecoin bill in June
Circle’s partnership in Japan comes after the country revised the Payment Services Act in June to establish stablecoin-related regulations. The Japanese government reportedly sought to ensure protection for stablecoin investors after TerraUSD’s implosion.
SBI Holdings has long been active in the crypto industry. Earlier this month, the financial conglomerate partnered with SC Ventures, the investment arm of Standard Chartered, to set up a $100 million crypto vehicle in the United Arab Emirates.
In September, Binance said it had partnered with a unit of Japanese bank MUFG to study the issuance of a new stablecoin pegged to fiat currencies, as it re-entered the Japanese market.
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