SBI Holdings, a major financial services company, announced a key collaboration with Circle, the issuer of USDC stablecoin, to redefine Japan’s virtual currency economy.
This move comes a few months after the Japanese government devised a strategy to spring up the web3 industry.
SBI and Circle Collaboration
The new deal comes after the duo’s recent conclusion of a Memorandum of Understanding (MOU).
An announcement from Circle highlights why the Tokyo-based institution will work with USDC stablecoin.
USDC is 100% backed by highly liquid cash and cash-equivalent assets and is redeemable 1 to 1 for U.S. dollars, guaranteeing stability and trust. This liquidity is evident from data which indicates that as of November 17, 2023, over $12.7 trillion of on-chain USDC transactions were recorded.
Circle and the SBI group will band together to expand the uses and circulation of USDC in Japan, accelerating Japan’s evolution into a Web3 economy.
Before the full initiation of the deal, SBI VC Trade Co., Ltd. will seek registration as an electronic payment instrument service in Japan. Moreover, SBI Shinsei Bank will offer banking services to Circle, hence enhancing liquidity and access to USDC.
Consequently, the deal dictates that SBI Group adopts Circle’s Web3 Services solutions like wallet, blockchain infrastructure, and smart contract management tools.
Follows Recent Regulatory Clarity
The recent Circle-SBI deal comes only a few months after Japan induced regulatory clarity for crypto. Jeremy Allaire highlights that the regulatory changes dramatically created opportunities for Web3 in the world’s 4th largest economy.
Jeremy also shows excitement about the deal and a shared vision for the future of crypto.
He said, “We are excited to collaborate with SBI,” to set new standards in Japan’s financial sector.
Similarly, The Chairman, President and CEO of SBI Holdings, Yoshitaka Kitao, expressed optimism about the deal and the future of stablecoins in Japan.
Mr Kitao said;
“Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins… we are very pleased to have taken the first step toward widespread adoption of stablecoins in Japan.”