SBI Holdings announced it reached a partnership with stablecoin issuer Circle to circulate USDC stablecoins, establish a banking relationship and promote the use of Circle’s Web3 Services in Japan. This move from the Japanese financial conglomerate comes after the country’s government revised regulations for stablecoins in June 2023.
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SBI Holdings & Circle USDC Deal
In a statement, Circle and SBI said they have signed a Memorandum of Understanding (MOU) on works including the two companies working on the circulation of USDC and expanding the use of stablecoins in Japan. In the context of the regulatory hurdles faced by crypto companies across the world, the two companies have committed to properly complying with stablecoin related regulations, including communication with authorities. Meanwhile, SBI is awaiting approval of registration as an electronic payment instruments service, to be able to circulate USDC stablecoins in the country.
The Revised Payment Services Act introduced by the Japanese government on June 3, 2023 states stablecoin related guidelines on the issuance and circulation of stablecoins in Japan and advance the country’s transition towards a Web 3.0 economy. The revised Act also recognizes collateralized stablecoins, which is where claims of Circle’s USDC being 100% backed by highly liquid cash and cash-equivalent assets comes into context, the statement revealed.
Japan’s Crypto Ecosystem In Full Swing
SBI’s USDC deal comes at the back of a $100 million digital asset joint venture investment company in the UAE, as reported by CoinGape earlier. The joint venture is aimed at investing in crypto companies, at a time when the likes of Blackrock and Fidelity are awaiting the approval of the first ever spot Bitcoin ETF in the United States. SBI Holdings is also known for partnering with Ripple since as long as 2017, despite the company’s long drawn XRP lawsuit against the U.S. Securities and Exchange Commission (SEC).
In August 2023, Binance Japan rolled out a crypto asset exchange service, in further expansion to the country’s already growing crypto market. Currently, the platform offers a total of 47 tokens for trading, with the recent addition of the likes of Near Protocol (NEAR) and Optimism (OP).
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