The memorandum of understanding outlines the terms of the deal, but before SBI Holdings can implement them, the company must get registered as a supplier of electronic payment instruments in the nation.
In an effort to increase the use of USD Coin (USDC) and Web3 services in Japan, Circle, the stablecoin issuer, has partnered with SBI Holdings, a financial services corporation located in Tokyo.
The strategic growth of USDC into Japan would be supported by a memorandum of understanding (MOU) that Circle says it finalized with SBI Holdings on November 27.
Assuming the Japanese government grants SBI Holdings the necessary approvals, the company will seek registration as an electronic payment instruments provider and begin circulating USDC inside the country.
Yoshitaka Kitao, CEO and President of SBI Holdings, is hoping it will lead to widespread use of stablecoins in Japan.
The cooperation “represents a shared vision for the future of digital currency” in Japan and Asia, according to Circle CEO Jeremey Allaire. Allaire also called the relationship a “milestone” in the company’s development into the area.
In addition, he said that Circle would collaborate with SBI to increase the use of Circle’s Web3 Services package, which includes tools for creating, deploying, and managing Web3 applications on various blockchains. “Consider amusement, culture, and games for consumers,” Allaire said.
“We are delighted about working with SBI towards establishing new standards in the financial sector in Japan,” said Allaire.
Circle has announced that SBI Shinsei Bank, a wholly owned subsidiary of SBI, would be providing banking services to the company. This will allow companies and users in Japan to have access to USDC and liquidity.
Despite Circle’s American headquarters, 70% of USDC adoption is happening outside of the US, with Asia being the most active region, as pointed out by Allaire in August.
“Demand for safe, transparent digital dollars” is particularly high in Africa and Latin America, the Circle chief further said.
CoinGecko reports that USDC’s market value is $24.6 billion, making it the second most valuable stablecoin at now, behind only Tether (USDT).
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