USDC

<p>In a move aimed at advancing the adoption of the USD Coin (USDC) in the Japanese market, stablecoin issuer Circle and Japanese financial behemoth SBI Holdings have entered into a memorandum of understanding (MOU).</p><h2 id="header-0">Banking and distribution</h2><p>The collaboration, outlined in a press release <a href="https://www.circle.com/en/pressroom/sbi-holdings-partners-with-circle-to-pioneer-digital-currency-innovation-in-japan-with-usdc-banking-and-web3-services" rel="noopener noreferrer nofollow">published</a> on Monday, seeks to enhance the circulation of USDC, establish a robust banking relationship and broaden the footprint of Circle in the Asian nation.</p><p>Key subsidiaries of SBI Holdings are set to play pivotal roles in this strategic partnership. SBI’s VC Trade Limited, among others, will actively engage by applying for licensing as an electronic payment instruments service, facilitating the distribution of USDC across Japan. Notably, this move aligns with efforts to propel the electronic payment ecosystem in the country.</p><p>Further solidifying the collaboration, SBI’s Shinsei Bank will provide crucial banking services that empower access to USDC and enhance liquidity for businesses and users based in Japan. This initiative not only promotes the widespread usage of USDC but also establishes a secure financial infrastructure for its seamless integration into the Japanese market.</p><h2 id="header-1">Web3 service offering</h2><p>As part of this collaboration, the SBI Group plans to incorporate Circle’s Web3 Services solutions, encompassing programmable wallets, blockchain infrastructure and smart contract management tools.</p><p>Circle has been busy in recent weeks, rolling out partnerships in the Asian region that will see greater use of its Web3 Services suite. In Taiwan, it<a href="https://medium.com/&#64;coinness.gl/circle-partners-with-asian-convenience-store-chain-to-push-usdc-adoption-bf9288e72a1a" rel="noopener noreferrer nofollow"> partnered</a> with a convenience store chain recently, in a move that will integrate its Web3 services into the Taiwan FamilyMart app. A similar <a href="https://medium.com/&#64;coinness.gl/circle-and-grab-partner-to-pilot-web3-app-integration-bfa1c594cff1" rel="noopener noreferrer nofollow">deal</a> was struck in September with Grab, a Southeast Asian multifaceted super-app.</p><p>Jeremy Allaire, CEO of Circle, expressed the groundbreaking nature of this partnership, envisioning USDC as a stablecoin that can be extensively utilized in Japan’s burgeoning on-chain economy across various consumer-led Web3 product categories.</p><p>Allaire had signaled an <a href="https://medium.com/&#64;coinness.gl/circle-considers-issuing-stablecoin-in-japan-aceb2342707b" rel="noopener noreferrer nofollow">interest</a> in delving further into the Japanese market back in July. Then, he suggested that the company might consider launching a stablecoin in Japan but that it was also interested in exploring partnerships in the East Asian country.</p><p>Yoshitaka Kitao, CEO of SBI Holdings, commended Japanese authorities for creating a regulatory environment conducive to the adoption of stablecoins within the region. In June, Japan passed legislation mandating that stablecoins must be fully backed by highly liquid cash and cash-equivalent assets, preventing a recurrence of issues experienced by certain stablecoins.</p><h2 id="header-2">SBI’s digital asset involvement</h2><p>While Circle has very much been advancing its service offering in the Asian region in 2023, likewise SBI has been delving further into the realm of digital assets and Web3. In April it led a funding round into Standard Chartered subsidiary company Zodia Custody, a digital asset custodian. SBI has also invested in Zodia Markets, an exchange and brokerage platform which is also a Standard Chartered subsidiary company.</p><p>SBI Holdings <a href="https://medium.com/&#64;coinness.gl/japans-odx-to-commence-digital-securities-trading-in-december-e8811e2505c7" rel="noopener noreferrer nofollow">established</a> the Osaka Digital Exchange (ODX) in 2021, a crypto exchange business which will commence security token trading next month. In a social media <a href="https://x.com/jerallaire/status/1728984711140159535?s&#61;20" rel="noopener noreferrer nofollow">post</a> on the X platform, Allaire highlighted SBI’s involvement in the digital assets space:</p><p>“Importantly, Kitao-san is not a ‘johnny come lately’ to crypto and blockchain tech. He has understood it and invested in it for nearly a decade. SBI Holdings already operates digital asset trading, brokerage and cross-border payments solutions.”</p>

Circle and SBI Holdings join forces to propel USDC growth in Japan

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