Circle and SBI Holdings join forces to expand USDC adoption in Japan
Circle and SBI Holdings join forces to expand USDC adoption in Japan
USDC stablecoin issuer Circle announced that it has partnered with Japanese financial institution SBI Holdings to expand the distribution and adoption of USDC and Web3 services in Japan.
Circle has signed a cooperation agreement with financial services group SBI Holdings to expand USDC, establish banking relationships, and promote Web3 services in Japan, Cointelegraph reported.
Under the agreement, SBI Shinsei Bank, a subsidiary of SBI, will provide banking services to Circle, allowing Japanese companies and users to access USDC and receive more liquidity. SBI Group will also adopt Circle's Web3 service solutions, such as programmable wallets, blockchain infrastructure, and smart contract management tools.
Circle said the memorandum of understanding with SBI Holdings was signed on November 27, which will facilitate the strategic expansion of USDC in Japan.
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The collaboration between Circle and SBI Holdings will increase the circulation of USDC tokens and transform Japan's financial system with Web3. This partnership represents a major leap in digital asset innovation and the strategic expansion of USDC in Asia.
The decision to merge was prompted by changes in Japanese legislation, specifically the Payment Services Law, which places controls on stablecoins. Circle believes that these measures will "incentivize the issuance and circulation of stablecoins in Japan and accelerate the adoption of Web3 technologies".
In order to launch USDC payments in Japan, SBI Holdings will obtain approval from the Japanese authorities and be recognized as an electronic payment instrument service.
USDC is now the second-largest stablecoin after Tether (USDT), with a market capitalization of $24.6 billion.
Yoshitaka Kitao, CEO and President of SBI Holdings, said that this cooperation will lead to the mass adoption of stablecoins in the country. "Japan is laying the groundwork for the widespread adoption of stablecoins. We are pleased to sign the framework agreement for a comprehensive business alliance with Circle."
Jeremy Allaire, CEO of Circle, commented that he sees the partnership as an opportunity to influence the future of digital currencies in Asia, which will be an important step for Circle as part of its expansion plan in the region.
"We are excited to partner with SBI to set new standards in the financial sector in Japan," noted Allaire.
SBI Shinsei Bank, on its part, will provide banking services to Circle, enabling Japanese businesses and users to access USDC.
It is worth noting that while Circle is based in the U.S., approximately 70% of USDC adoption comes from other countries, led by Asian nations.
Increased demand for digital currencies is growing against the backdrop of their security and transparency, said the head of Circle. Separately, he emphasized the growth of distribution in Latin America and Africa.
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