Stablecoin Issuer Circle Teams Up With Japan's SBI Holdings To Maximize USDC Presence

USDC USDC/USD stablecoin issuer Circle signed an agreement with Japanese securities and banking major, SBI Holdings. This will expand stablecoin usage in Japan and widen the use of Circle’s Web3 services.

What Happened: The deal will see that the two companies remain compliant with stablecoin-related regulations, including communication with authorities.

For the circulation of USDC stablecoins in the country, SBI VC Trade Co is looking for approvals for registration as an electronic payment instruments service.

SBI Shinsei Bank Ltd. will also provide banking services to Circle for providing stablecoin access and liquidity for Japan-based businesses and users. Under the SBI Group’s digital asset portfolio strategy, it will also adopt Circle’s Web3 Services solutions like Programmable Wallet, blockchain infrastructure, and smart contract management tools.

Also Read: Standard Chartered, SBI Holdings Team Up For $100M UAE Digital Asset Joint Venture

Why It Matters: “Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins, such as through the revised Payment Services Act implemented in June 2023. Under such circumstances, we are very pleased to have signed a basic agreement for a comprehensive business alliance with Circle,” SBI chair and CEO Yoshitaka Kitao said.

The Revised Payment Services Act establishes collateralized stablecoins that are backed by legal tender. In the case of Circle, the stablecoins have the backing of highly liquid cash and cash-equivalent assets and are always redeemable 1:1 for USD.

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