SBI Holdings, Inc has entered into a Memorandum of Understanding (MOU) with Circle Internet Financial, the issuer of USDC, to launch the USDC stablecoins, establish a banking relationship and promote the use of Circle’s Web3 Services in Japan.
Japan’s Revised Payment Services Law establishes fiat-backed “parasites” of stablecoins. Circle USDC goes one step further because it is backed 100% by highly liquid cash and cash equivalent assets and is always redeemable 1-to-1 for USD. USDC reserves are held separately from Circle’s operating funds at leading financial institutions for the benefit of USDC holders.
The companies have signed a Memorandum of Understanding supporting future work, which includes SBI Group and Circle initially working to launch USDC and expand the use of stablecoins in Japan. SBI Group and Circle have also committed to properly comply with stablecoin-related regulations, including communicating with authorities.
For the circulation of USDC stablecoins within Japan, SBI VC Trade Co., Ltd. is seeking registration as an electronic payment instrument service, subject to regulatory approval.
SBI Shinsei Bank, Limited will also provide banking services to Circle. This will enable USDC access and liquidity for businesses and users based in Japan. Additionally, as part of SBI Group’s digital asset portfolio strategy, SBI Group will also adopt Circle’s Web3 Services solutions such as Programmable Wallet, blockchain infrastructure and smart contract management tools.
“Our partnership with SBI Holdings represents a shared vision for the future of digital currency and is an important milestone in Circle’s expansion plans in Japan and Asia Pacific,” said Jeremy Allaire, CEO and co-founder of Circle. “We are excited to partner with SBI to set new standards in the financial sector in Japan.”
“Japan is steadily preparing the groundwork for the full introduction of stablecoins, such as through the revised Payment Services Act implemented in June 2023. Under these 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 nearly 4 trillion yen and is used globally in more than 190 countries, has taken the first step towards the widespread adoption of stablecoins in Japan. SBI Group is committed to working wholeheartedly to realize new economic possibilities using stablecoins,” said Yoshitaka Kitao, Representative Director, Chairman, President & CEO of SBI Holdings.