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Circle, the entity behind the popular USD Coin (USDC), has recently joined forces with SBI Holdings, a major Tokyo-based financial firm, to enhance the presence of USDC and Web3 services in Japan. This collaboration was formalized through a memorandum of understanding (MOU) signed on November 27, marking a strategic move to introduce USDC to the Japanese market. Two years ago, SBI launched Japan’s first crypto fund.
USDC currently stands as the world’s second-largest stablecoin, trailing only behind Tether.
This initiative aligns with recent updates in Japan’s Payment Services Act, which took place in June, introducing regulations for stablecoins. Circle views these changes as a catalyst for boosting the issuance and circulation of stablecoins in Japan, potentially accelerating the country’s transition to a Web3 economy.
SBI Holdings is taking active steps to facilitate the introduction of USDC in Japan. The company is pursuing registration as an electronic payment instruments service provider, pending approval from Japanese regulatory bodies. Yoshitaka Kitao, CEO and President of SBI Holdings, expressed optimism about this development, seeing it as a significant step towards widespread stablecoin adoption in Japan. He said:
“Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins [and] we are very pleased to have signed a basic agreement for a comprehensive business alliance with Circle.”
Jeremey Allaire, CEO of Circle, shares this enthusiasm, noting the partnership as a critical milestone in Circle’s expansion efforts in Asia. Allaire emphasized the collaboration’s potential to revolutionize digital currency usage in Japan and Asia. In his words, it “represents a shared vision for the future of digital currency” in the country. Additionally, Circle plans to work with SBI to promote its comprehensive Web3 Services suite, which supports the development and operation of Web3 applications across various blockchains, focusing on sectors like gaming, culture, and consumer entertainment.
Allaire also highlighted the role of SBI Shinsei Bank, an SBI subsidiary, in supporting Circle’s venture. The bank will offer essential banking services to facilitate access and liquidity of USDC for businesses and users in Japan.
Interestingly, while Circle is U.S.-based, Allaire pointed out in August that 70% of USDC adoption occurs overseas, with Asia being a significant contributor. He also mentioned the growing demand for reliable, transparent digital dollars in regions like Latin America and Africa.