According to the latest press release, SBI Holdings has officially inked a Memorandum of Understanding (MOU) with Circle Internet Financial. The strategic alliance aims to circulate USDC stablecoins, establish a banking relationship, and promote the adoption of Circle’s Web3 Services in Japan.
Circle’s Web3 Services Take Center Stage
The Japanese government, recognizing the growing influence of the digital asset economy, revised the Payment Services Act on June 3, 2023. This regulatory update paves the way for stablecoins’ issuance and circulation, aligning with the global trend towards a Web3 economy.
Circle’s USDC stands out by being fully backed 100% by highly liquid cash and cash-equivalent assets, ensuring a 1-to-1 redeemable value for U.S. dollars. With reserves held separately from operating funds, USDC has facilitated over $12.7 trillion in on-chain transactions as of November 17, 2023.
Under the MOU, SBI Group and Circle commit to expanding the use of stablecoins in Japan while adhering to stablecoin-related regulations. SBI VC Trade Co., Ltd., a subsidiary of SBI Group, is actively seeking registration as an electronic payment instruments service to facilitate the circulation of USDC within Japan, pending regulatory approval.
On the other hand, SBI Shinsei Bank, Limited will play a crucial role by providing banking services to Circle. This collaboration is expected to enhance USDC access and liquidity for businesses and users in Japan. Furthermore, as part of its digital asset portfolio strategy, SBI Group plans to leverage Circle’s Web3 Services, including the Programmable Wallet, blockchain infrastructure, and smart contract management tools.
Jeremy Allaire, CEO and co-founder of Circle, said:
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 Asia Pacific. We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.
Yoshitaka Kitao, Representative Director, Chairman, President & CEO of SBI Holdings, highlighted the timely nature of the collaboration. Given Japan’s preparations for the widespread introduction of stablecoins, particularly through the revised Payment Services Act, Kitao expressed pleasure in taking the initial step towards fostering the adoption of stablecoins in the country.
However, the partnership between SBI Holdings and Circle is poised to shape new standards in the Japanese financial sector, marking a crucial milestone in the global journey towards the mainstream adoption of stablecoins.