SBI Holdings Co., Ltd., a key player in global financial technology, and Circle Internet Financial, LLC, the issuer of the world’s largest regulated stablecoin USDC, have officially sealed a comprehensive business alliance aimed at fueling the adoption of stablecoins in Japan. This alliance encompasses USDC distribution in Japan, Circle’s bank account setup, and the facilitation of Web3-related services.
In a monumental move, SBI Holdings and Circle are aligning forces to tap into Japan’s leadership role in digital asset initiatives. Japan stands as the pioneering country to regulate stablecoins under the revised Fund Settlement Act, setting the stage for a surge in stablecoin issuance, distribution, and the rapid evolution towards a Web3-centric society.
Circle’s USDC, a stablecoin pegged to the US dollar, complies with Japan’s Payment Services Act by being 100% collateralized with highly liquid assets, ensuring a 1:1 exchange ratio with the US dollar. Furthermore, robust measures safeguard USDC holders, with reserves stored separately from operating funds. Notably, over $12.7 trillion in on-chain USDC transactions have been conducted as of November 17, 2023, reflecting its global significance.
The strategic partnership between SBI Holdings and Circle is primed to inaugurate the distribution of Circle-issued USDC in Japan, amplifying the utility of stablecoins within the country. Both entities are committed to proactively engaging with regulatory authorities, including SBI VC Trade Co., Ltd.’s pursuit of registering as an electronic payment method transaction business.
SBI Shinsei Bank, Ltd. is set to extend banking services to Circle in Japan through account provision, significantly enhancing accessibility and liquidity for businesses and users alike.
Beyond this, the collaboration encompasses a broader digital asset strategy, with the SBI Group teaming up with Circle to introduce various Web3-related systems, including programmable wallets, blockchain infrastructure, and smart contract management tools.
Jeremy Allaire, Co-Founder, and CEO of Circle expressed enthusiasm about the partnership, highlighting its significance in shaping the future of digital currencies in Japan and the Asia Pacific. He emphasized their joint commitment to expanding stablecoin use cases.
Yoshitaka Kitao, Chairman, and President of SBI Holdings, acknowledged the evolving stablecoin landscape in Japan and stressed the pivotal role of this alliance with Circle in laying the groundwork for the country’s stablecoin integration. He articulated the SBI Group’s dedication to reshaping finance through stablecoins.
Circle is a global financial technology company empowering businesses to leverage digital currencies and public blockchains for diverse financial applications. It’s the creator of USDC and EURC, offering a highly liquid, interoperable money protocol.
SBI Holdings, established in 1999 as an Internet financial services pioneer in Japan, operates a multifaceted financial services conglomerate, encompassing securities, banking, insurance, asset management, venture capital, crypto asset services, and Web3-related initiatives globally.