Even though Circle already offers USD Coin (USDC), its co-founder and CEO Jeremy Allaire believes that introducing a Yen-linked stablecoin would provide new opportunities.
Circle, the company that issues USDC (USD coin), a stablecoin linked to the United States dollar, is now interested in strengthening its presence in Asia. The company’s co-founder and CEO Jeremy Allaire is considering issuing stablecoins in Japan after visiting the country in June.
Allaire’s interest in Japan is coming after Japan implemented stablecoin legislation that allows and governs the use of stablecoin in the country and beyond. He believes that if stablecoins gain widespread adoption for international and cross-border trades, then Japan could be a major market for digital assets, especially because the new stablecoin regulation is already putting Japan ahead of many countries.
In an interview with Japan Posts English, Allaire stated:
“As a global company, we want to grow in large markets around the world. USDC is already used in 190 countries. Japan has a long history of cross-border trade, foreign currency transactions, and global commerce. If stablecoins become more widely used for such purposes, we believe that Japan will become an extremely large market.”
Japan is the first country among major economies in the world to have a structured and clear law that governs the use of stablecoins. According to the law, the stablecoins in the country have to be pegged to the Japanese Yen or another major currency that serves as a reserve asset and must guarantee redemption to the holders at face value. The law also allows only trusted and licensed agents to issue the stablecoin. The entities include banks licensed in the country and registered money transfer agents.
Although the company will have to comply with the tough rules stated in the Japanese Act, Allaire is interested in the partnership. He sees the move by the Japanese government as an important one which opens the door for his company to partner toward the goal of a digital financial system.
Circle Has Continued to Expand Its Stablecoin Services to Many Regions
Circle is a regulated digital asset and money transfer company in the United States. The company was recently registered and regulated in Singapore as a money transfer company that can issue digital currencies and transfer money across borders. It is also working on getting authorization in Europe as a digital asset provider. Its interest in the Japanese market is obviously part of a larger move to spread its services to many countries around the world.
Even though the company has USDC, the CEO believes that a Yen-linked stablecoin would provide new opportunities. The company seeks to continue to grow and provide the necessary financial infrastructure to facilitate the growth of the digital financial system.
Some other financial institutions in the country are also expressing interest in using stablecoins. One is Mitsubishi UFJ Trust, which announced its desire to launch its own stablecoin platform, Progmat, where interested organizations can mint their stablecoins. Although MUFJ didn’t announce the plan to create its own stablecoin, the move will facilitate other institutions’ easy creation of stablecoin.
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