SBI Holdings partners with Circle to usher in a new era of stablecoins in Japan: introducing USDC, banking services, and Web3 technology.

SBI Holdings, Inc. has reached a historic partnership with global fintech giant Circle Internet Financial to promote USDC stablecoin in Japan, jointly exploring a new bridge between banking services and Web3 technology.

Japanese Financial Giant SBI Partners with Circle

SBI Holdings, Inc., known as SBI, a Tokyo-based financial powerhouse, has signed a Memorandum of Understanding (MOU) with Circle Internet Financial, based in Boston, USA. This MOU signifies a collaboration to promote the circulation of the stablecoin USDC in Japan, establish deeper banking relationships, and facilitate the adoption of Circle's Web3 services in Japan.

Japanese Government Regulations Support Stablecoin Circulation

With the amendment of the Payment Services Act by the Japanese government on June 3, 2023, new regulations have been established for stablecoins, marking Japan's proactive move towards a Web3 economic system transformation. The enactment of this regulation is expected to promote the issuance and circulation of stablecoins in Japan.

Unique Advantages of USDC

Circle's stablecoin USDC is not only backed by fiat currencies but also guaranteed by 100% support from highly liquid cash and cash-equivalent assets. The reserve funds for USDC are kept separate from Circle's operational funds in top financial institutions, ensuring the interests of USDC holders. As of November 17, 2023, the on-chain transaction volume of USDC has exceeded 12.7 trillion USD.

Realizing USDC Circulation in Japan

According to the signed MOU, SBI Group and Circle will first focus on the circulation of USDC and expanding the use of stablecoins in Japan. Additionally, both companies have committed to complying with regulations related to stablecoins, including communication and coordination with authorities.

Banking Services and Web3 Solutions

SBI Neo Bank will provide banking services to Circle to support the availability and liquidity of USDC for Japanese businesses and users. Furthermore, as part of the SBI Group's digital asset strategy, the group will adopt Web3 service solutions provided by Circle, including programmable wallets, blockchain infrastructure, and smart contract management tools.

Views from Leadership of Both Parties

Jeremy Allaire, Co-Founder and CEO of Circle, expressed that the collaboration with SBI Holdings embodies a shared vision for the future of digital currencies and is a significant milestone in Circle's expansion plans in Japan and the Asia-Pacific region.

Yoshitaka Kitao, Representative Director, Chairman, and President of SBI Holdings, stated that Japan is steadily preparing for the comprehensive introduction of stablecoins. They are pleased to have reached a basic agreement on a comprehensive business alliance with Circle, marking the first step in widely promoting stablecoins in Japan. "In June 2023, Japan domestically implemented the revised Fund Settlement Act and began to establish a system related to stablecoins. Against this backdrop, we are pleased to announce that we have reached a basic agreement with Circle, a company that operates and issues the stablecoin USDC, which has a market capitalization close to 4 trillion yen and is widely used in over 190 countries worldwide. This signifies the first step in promoting stablecoins in Japan. The SBI Group will spare no effort in realizing a new financial model based on stablecoins."