According to a report by “The Block,” stablecoin issuer Circle will collaborate with Japanese financial group SBI Holdings to promote the circulation of USDC stablecoin, establish banking relationships, and promote the use of Circle Web3 services in Japan.
In a statement released on Monday (27th), Circle stated that the company has signed a memorandum of understanding with SBI Holdings, laying the foundation for future work, including “SBI Holdings and Circle’s initial commitment to the circulation of USDC and expanding the use of stablecoins in Japan.” As a result, SBI group’s cryptocurrency exchange SBI VC Trade is currently seeking registration as a Japanese electronic payment service provider.
According to the statement, SBI Sumishin Net Bank will also provide banking services for Circle. Circle’s Co-founder and CEO, Jeremy Allaire, stated that the collaboration with SBI Holdings “represents a shared vision for the future of digital currencies by both parties, marking an important milestone in Circle’s expansion plans in Japan and the Asia-Pacific region.”
According to Zombit’s previous reports, Circle’s CEO first revealed the intention to issue stablecoins in Japan during an interview earlier this year. In June, the Japanese government amended the Payment Services Act, defining stablecoins backed by legal tender as a form of “electronic payment method” and allowing their issuance. Issuers must comply with strict rules, including pegging stablecoins to the yen or other fiat currencies and ensuring holders have the right to redeem them at face value.
Related reports: “Standard Chartered’s SC Ventures and SBI Holdings Establish Joint Venture, Planning to Invest $100 Million in Cryptocurrency Startups.”