By
Bhushan Akolkar
April 26th, 2024
In addition to securing a new banking partner for its USDC stablecoin, Circle said that SBI will adopt its other business offerings, providing end-to-end development, deployment, and operations platforms for building and operating Web3 apps across blockchains.
Circle Financial, one of the leading stablecoin issuers in the crypto industry and a financial technology company, has partnered with SBI Holdings to expand its presence in Japan.
In an announcement on November 27, the company stated that it had signed a memorandum of understanding (MoU) with Tokyo-based SBI Holdings, a financial services conglomerate, to broaden the adoption of its USDC stablecoin and the Web 3 ecosystem outside the United States, where Circle is headquartered.
Circle Secures New Partner for USDC Adoption
The move follows the Japanese government’s introduction of its revised payment services act on June 3 to establish a clear regulatory framework for the issuance and usage of stablecoins in the country. According to authorities, the amended law is expected to stimulate and advance the country’s adoption of the crypto industry as well as the Web3 economy.
With the rules in place, both Circle and SBI Holdings have joined forces to “underpin the work ahead,” which includes ensuring the circulation of the USDC stablecoin in the Japanese market.
Jeremy Allaire, the co-founder and CEO of Circle, said the collaboration with SBI Holdings represents a shared vision for the future of digital assets.
“Our partnership with SBI Holdings represents a shared vision for the future of the digital currency and is a significant milestone in Circle’s expansion plans in Japan and the Asia Pacific. We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan,” he said.
SBI to Register as a Payment Service Company in Japan
SBI will also serve as Circle’s new banking partner, enabling USDC access and liquidity for Japan-based businesses and users. The company’s subsidiary, SBI VC Trade Co., is currently seeking to register with Japanese financial authorities as an electronic payment instrument services provider to legally provide banking services to its new partner, Circle. However, the application is subject to approval by the appropriate authorities in charge of issuing crypto-related licenses. Both companies also plan to work with Japanese authorities to ensure adequate compliance with stablecoin-related legislation in Japan.
Exploring Additional Business Opportunities
In addition to securing a new banking partner for its USDC stablecoin, Circle said that SBI will adopt its other business offerings, providing end-to-end development, deployment, and operations platforms for building and operating Web3 apps across blockchains.
The company disclosed that SBI plans to explore its other business offerings, including its programmable crypto wallet, blockchain infrastructure, and smart contract management tools, as part of its digital asset portfolio strategy.
SBI Group’s representative director, chairman, and CEO Yoshitaka Kitao said the financial conglomerate is committed to exploring new financial possibilities using Circle and its stablecoin, USDC.
“SBI Group is committed to wholeheartedly working towards realizing new financial possibilities using stablecoins,” said Kitao.
Circle has been in business since October 2013, servicing its US-based customers and users worldwide with a suite of financial services products. The company’s USDC has emerged as the second-largest stablecoin in the industry, with a market capitalization of $24.6 billion, according to CoinGecko data.
Although based in the United States, Circle’s CEO mentioned earlier this year that 70% of USDC adoption has been recorded outside the country, with Asia topping the charts. The crypto asset is currently used in more than 190 countries worldwide.