SBI
Holdings, Inc. located in Tokyo has officially entered into a Memorandum of
Understanding (MOU) with Circle Internet Financial, which has headquarters in Boston,
Massachusetts. This collaboration aims to facilitate the circulation of USDC
stablecoins, establish a banking relationship, and promote the use of Circle’s
Web3 Services within Japan.
The
Japanese government, recognizing the significance of the digital asset economy,
revised the Payment Services Act on June 3, 2023. This revision has established
regulations for stablecoins, anticipating a boost in the issuance and
circulation of stablecoins in Japan, consequently advancing the country’s
transition towards a Web3 economy.
Under
the Revised Payment Services Act, “collateralized” stablecoins are
recognized, and Circle’s USDC has distinguished itself by being fully backed by
highly liquid cash and cash-equivalent assets. Notably, USDC has maintained a 1-to-1
peg with US dollars and is redeemable accordingly. The USDC reserves are held
separately from Circle’s operational funds in financial institutions.
Jeremy Allaire, CEO and co-founder, Circle, Source: LinkedIn
The
MOU signifies that SBI Group and Circle collaborate on promoting the
circulation of USDC and expanding the usage of stablecoins in Japan. Both
entities have pledged to adhere to stablecoin-related regulations, ensuring communication
with relevant authorities. SBI VC Trade is actively seeking registration as an
electronic payment instruments service to facilitate the circulation of USDC
within Japan, subject to approval by authorities.
In
addition to the collaboration on stablecoin circulation, SBI Shinsei Bank,
Limited will extend banking services to Circle. This partnership aims to
provide Japan-based businesses and users with access to USDC and enhanced
liquidity. As part of SBI Group’s digital asset portfolio strategy, Circle’s
Web3 Services solutions, including the Programmable Wallet, blockchain
infrastructure, and smart contract management tools, will be adopted.
Jeremy
Allaire, the CEO and Co-Founder of Circle, expressed enthusiasm about the
partnership with SBI Holdings, emphasizing the shared vision for the future of
digital currency. Yoshitaka Kitao, the Representative Director, Chairman, President, and CEO of SBI Holdings, echoed this sentiment, highlighting the alliance’s
role in setting new standards in the Japanese financial sector. Kitao
underscored SBI Group’s commitment to exploring new financial…
