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- 1 The collaboration, outlined in a Memorandum of Understanding, aims to expand the usage of stablecoins in Japan, starting with the circulation of USDC.
- 2 Jeremy Allaire, CEO and co-founder of Circle expressed enthusiasm about the collaboration.
- 3 Allaire deemed it a significant milestone in Circle’s expansion plans in Japan and the Asia Pacific (APAC) region.
Financial technology company Circle, the issuer of the USDC stablecoin, has announced a strategic partnership with Japanese securities and banking giant SBI Holdings. The collaboration, outlined in a Memorandum of Understanding, aims to expand the usage of stablecoins in Japan, starting with the circulation of USDC.
SBI VC Trade, a subsidiary of SBI Holdings, is currently in the process of seeking registration as an electronic payment instruments service in Japan. The move aligns with the country’s revised Payment Services Act, which introduced regulations specific to stablecoins in June.
Japan, the world’s third-largest economy, is projected to slip to the fourth position this year, according to estimates from the International Monetary Fund.
As part of the collaboration, SBI Shinsei Bank will provide banking services to Circle. This will facilitate access to USDC and enhance liquidity for businesses and users based in Japan.
The strategic partnership extends beyond stablecoin circulation, with SBI Group planning to adopt Circle’s Web3 Services solutions. These include Programmable Wallets, blockchain infrastructure, and smart contract management tools.
Jeremy Allaire, CEO and co-founder of Circle expressed enthusiasm about the collaboration, stating that this represents a shared vision for the future of digital currency and is a significant milestone in Circle’s expansion plans in Japan and the Asia Pacific (APAC) region.
The Japanese government’s move to establish stablecoin-related regulations indicates a proactive approach to investor protection, particularly in the aftermath of the implosion of TerraUSD.
Circle’s partnership with SBI Holdings comes at a crucial time, offering a valuable opportunity to navigate the evolving regulatory landscape and promote the adoption of stablecoins.
SBI Holdings, known for its active involvement in the cryptocurrency industry, recently solidified its position with a partnership with SC Ventures, the investment arm of Standard Chartered.
Together, they are establishing a $100 Million crypto vehicle in the United Arab Emirates, showcasing SBI’s commitment to fostering innovation and growth in the digital asset space.
This collaboration signifies a strategic move by Circle to establish a stronger foothold in Japan, leveraging SBI Holdings’ influence and expertise. As the regulatory environment for digital assets continues to evolve globally, partnerships between fintech companies and established financial institutions become increasingly vital to drive the responsible growth of the digital currency ecosystem.
The integration of stablecoins, especially USDC, into mainstream financial services marks a significant step towards achieving broader acceptance and utility in the global economy.
USDC stablecoin currently holds the market capitalization of $24.6 Billion. In the last 24 hours, the Circle’s USD Coin (USDC) saw a trading volume of $4.4 Billion.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
