USDC

<p>In a bid to expand the utility of USDC (USD Coin) in Japan, Coincheck, a cryptocurrency trading platform based in Tokyo, has unveiled a strategic collaboration with Circle Internet Financial, the global fintech firm and the issuer of the USDC stablecoin.</p><h2 id="header-0">Broadening USDC accessibility</h2><p>The partnership, <a href="https://www.circle.com/en/pressroom/circle-and-coincheck-to-partner-on-expanding-access-to-usdc-in-japan" rel="noopener noreferrer nofollow">announced</a> on Feb. 27, signals Coincheck&#39;s proactive stance towards broadening accessibility to the USD-pegged coin within Japan&#39;s cryptocurrency landscape. This move is particularly noteworthy given Coincheck&#39;s stature as a subsidiary of Monex Group, a major securities firm that <a href="https://coinnesslive.page.link/xfU7MEnU9Sz7YZTj9" rel="noopener noreferrer nofollow">acquired</a> a controlling interest in Canadian crypto asset management firm 3iQ in December of last year.</p><p>Coincheck, established in 2014 and boasting a user base of 1.91 million verified accounts as of January 2024, is poised to play a pivotal role in driving USDC adoption within Japan.</p><h2 id="header-1">Regulatory hurdles</h2><p>Regulatory hurdles remain significant for the widespread adoption of USD-backed digital assets within the east Asian country. Presently, major Japanese cryptocurrency exchanges have refrained from listing such coins, awaiting regulatory approval under the jurisdiction of the Japanese Payment Services Act, which mandates obtaining &#34;Electronic Payment Instrument Services&#34; registration.</p><p>Despite these challenges, fiat-pegged coins like USDC and USDT continue to enjoy substantial popularity across Asia, reflecting a burgeoning interest in stablecoins as reliable vehicles for value transfer and storage.</p><p>Oki Matsumoto, managing director and chairman of Coincheck, emphasized the strategic significance of the partnership in catalyzing growth within Japan&#39;s crypto ecosystem and the broader blockchain industry. He expressed optimism regarding the collaborative efforts between Coincheck and Circle in advancing the adoption of digital assets in the Japanese market.</p><h2 id="header-2">Circle’s ongoing focus on Japan</h2><p>Circle&#39;s engagement with Japan is not unprecedented, as the company had previously <a href="https://coinnesslive.page.link/mvi4SwAK5vP7RdMg6" rel="noopener noreferrer nofollow">entered into</a> a memorandum of understanding (MOU) with SBI Holdings, a formidable player in Japan&#39;s financial sector. This partnership aimed to spearhead digital currency innovation, streamline cross-border transactions and enhance liquidity in the digital asset market.</p><p>Last month Circle <a href="https://coinnesslive.page.link/HzyVkhXxxMtqHbLS9" rel="noopener noreferrer nofollow">identified</a> the Asia-Pacific (APAC) region as being ripe for stablecoin adoption. It outlined that it was particularly encouraged by the ongoing development of forward-looking regulatory frameworks in Asian centers like Singapore, Hong Kong and Japan.</p><p>In a parallel development, Circle recently <a href="https://www.circle.com/en/pressroom/overdare-and-circle-to-forge-new-frontiers-in-mobile-gaming-and-web3" rel="noopener noreferrer nofollow">announced</a> a partnership with Overdare, a joint venture which was <a href="https://coinnesslive.page.link/ELgCHyMH1SKvyx9MA" rel="noopener noreferrer nofollow">originally formed</a> in September between gaming firms Krafton and Naver Z, poised to redefine the landscape of mobile user-generated content (UGC) gaming. This collaboration seeks to empower game content creators by integrating Circle&#39;s user-controlled Programmable Wallets, enabling them to seamlessly receive USDC payouts for their creative endeavors.</p><p>Circle&#39;s foray into the creator economy through its collaboration with Overdare demonstrates another strategy that the company is employing to bring about adoption and gain traction in the market, pivoting towards Web3 innovation and its emphasis on development within the APAC region.</p><p>With USDC boasting a market capitalization of approximately $27 billion and circulating supply exceeding $24 billion, as reported in its December 2023 reserve attestation, Circle&#39;s strategic partnerships with Coincheck and Overdare herald the latest efforts to trigger adoption within the Japanese and broader APAC region’s cryptocurrency and gaming spheres.</p>

Circle forges partnership with Japan’s Coincheck

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