- The strategic partnership between Circle USDC and SBI Japan will significantly enhance Web3 development and adoption in Japan amid the ongoing crypto regulatory implementation.
- SBI Holdings is a major XRP holder thus making the partnership with Circle a huge deal for the longevity of Ripple as a cross-border blockchain company.
In preparation for the mainstream adoption of Web3 and blockchain technology in Japan, leading stablecoin issuer Circle Internet Financial has announced a strategic partnership with SBI Holdings by signing a Memorandum of Understanding (MOU).
According to the announcement that has sparked notable excitement in the web3 industry, SBI Holdings will help Circle in circulating the USDC stablecoins in the country through its customers. Furthermore, Circle has given SBI Holding, through the SBI Shinsei Bank, the right to hold the cash reserves for the USDC holders to enable seamless 1:1 redemption.
Circle’s USDC is marketed as one of the highly liquid stablecoins with cash and cash equivalent assets. Jeremy Allaire, CEO and co-founder of Circle said:
Our partnership with SBI Holdings represents a shared vision for the future of digital currency, and is a significant milestone in Circle’s expansion plans in Japan and Asia Pacific[…] We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.
Japan Welcomes Global Web3 Companies
As a leading global economy with nearly $5 trillion in gross domestic product (GDP), the Japanese government has been working on ensuring growth prospects.
The web3 and blockchain technology have been identified as crucial elements to enable the exponential growth of the country. As a result, the Japanese regulators have been working on passing clear crypto regulatory rules.
For instance, the Japanese government revised the Payment Services Act in June this year in a bid to establish the proper regulations for stablecoins that are backed by cash in a bid to boost the web3 local industry. The official entrance of Circle USDC in the Japanese market is an indication of the growing demand for digital assets in the country.
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, which manages and issues USDC, a stablecoin with a market capitalization of nearly 4 trillion yen and used globally in more than 190 countries, and to have taken the first step toward widespread adoption of stablecoins in Japan. SBI Group is committed to wholeheartedly working towards realizing new financial possibilities using stablecoins,”
Yoshitaka Kitao said, representative director, and Chief Executive Officer of SBI Holdings.
Notably, Circle’s USDC has grown to a mature stablecoins startup with a market capitalization of about $24.6 billion and an average 24-hour trading volume of about $8.3 billion. Interestingly, the Circle USDC stablecoin has recorded more than $12.7 trillion in on-chain transactions since its inception till mid-November 2023.
The company’s future growth will rise exponentially, especially with the notable partnership in the web3 sector and significant financial support.
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