This collaboration aims to facilitate the adoption of USDC and Web3 services in Japan, but the move also aligns with the Japanese government's revisions to the Payment Services Act in June 2023, establishing regulations for stablecoins. Circle anticipates these regulations will encourage the issuance and circulation of stablecoins in Japan, fostering the country's transition toward a Web3 economy.
As part of the initiative, SBI Holdings is seeking registration as an electronic payment instruments service, pending approval from Japanese authorities, to introduce USDC circulation in Japan. SBI Holdings officials view this step as instrumental in promoting widespread stablecoin adoption within the country.
Circle officials cited by cointelegraph.com shared their views on this new partnership and described it as a manifestation of a shared vision for the future of digital currency in Japan and Asia. They emphasised its significance in Circle's expansion strategy in the region.
In addition to advancing USDC adoption, Circle and SBI will collaborate to promote the adoption of Circle's full-stack Web3 Services suite. This suite offers end-to-end development, deployment, and operations platforms for building and operating Web3 apps across blockchains, with a focus on areas such as games, culture, and consumer entertainment.
SBI Shinsei Bank, a subsidiary of SBI, will play a role in facilitating USDC access and liquidity for Japan-based businesses and users by providing banking services to Circle. According to cointelegraph.com, despite Circle being based in the United States, the majority of USDC adoption, approximately 70%, is occurring overseas, with Asia leading the way. Circle officials have highlighted the robust demand for 'safe, transparent digital dollars' in regions such as Latin America and Africa.
At the time of writing, USDC holds the position of the second-largest stablecoin, following Tether (USDT), with a market capitalization of USD 24.6 billion, according to CoinGecko.
In September 2023, Circle collaborated with Latin American fintech Mercado Pago to introduce USD Coin (USDC) to Chile. This collaboration was situated within the broader context of Latin America's rising prominence as a hub for digital finance. The region is characterised by a robust developer community, substantial support for financial innovations, and a growing preference for digital currency as a secure store of value.
The joint efforts of Circle and Mercado Pago aimed to improve the efficiency and accessibility of trusted digital dollars in the Latin American region. This strategic initiative aligned with a shared vision to leverage innovative technology for empowering individuals, providing them with access to the global financial ecosystem.
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