Payments platform Circle has partnered with a Japanese financial giant as the country prepares for a full rollout of stablecoins.
In a new press release, Circle says it will partner with SBI Holdings as a means to introduce its stablecoin USDC and other web3 services to the Japanese market after the country revised a law to set regulations for dollar-pegged crypto assets.
However, the partnership still needs to be approved by regulators before it can take effect.
“The companies have signed an MOU (Memorandum of Understanding) in support of the upcoming work, including SBI Group and Circle initially working on USDC circulation and expanding the use of stablecoins in Japan.
SBI Group and Circle have also committed to properly comply with stablecoin-related regulations, including communications with authorities. To circulate USDC stablecoins within Japan, SBI asks VC Trade Co., Ltd. for registration as a service for electronic payment instruments, which is subject to approval by the authorities.
Additionally, SBI will acquire Circle’s web3 services such as blockchain infrastructure, smart contract management tools and a programmable crypto wallet.
As Yoshitaka Kitao, CEO of SBI, stated in the press release:
“Japan is steadily preparing the ground for the full adoption of stablecoins, such as through the revised Payment Services Act implemented in June 2023.
Under such circumstances, we are very pleased to have signed a basic agreement for a comprehensive business alliance with Circle, which manages and issues USDC, a stablecoin with a market capitalization of almost four trillion yen and used in more than 190 countries worldwide. have taken the first step towards widespread adoption of stablecoins in Japan.
SBI Group is passionately committed to realizing new financial possibilities using stablecoins.”
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