In an advance communication, the prominent stablecoin issuer Circle sealed a partnership agreement with the Japan-based financial institution SBI Holdings to push for mainstream crypto adoption.
The two partners agreed to combine forces to increase USDC and Web3 services adoption in Japan. A review of the November 27 memorandum of understanding (MOU) demonstrated that the partnership will support Circle’s expansion to the vibrant Japanese market.
Circle Partners with SBI Holdings Japan
The partnership demonstrated Circle’s readiness to establish a solid market in Japan as the regulator seeks to enforce new regulations on stablecoins. In June the Japanese policy makers formulated the Payment Services Bill that outlines the rules for regulating stablecoins.
The bill is undergoing further review before being approved by the Japanese legislative bodies. According to Circle, once the Payment Services Bill is approved, Japan will create a friendly environment for crypto assets.
The report indicates that Circle supports the approval of the Payment Services Act, which will smoothly transition the Japanese traditional financial market to the Web3 sector.
Notably, the bill’s approval will increase the circulation of stablecoin in the Japanese market. The expected growth of stablecoin will stimulate crypto adoption in the land of the rising sun.
In readiness for the astonishing growth of the Japanese stablecoin industry, Circle and SBI Holdings have devised strategies to operate compliantly. Firstly, SBI Holding seeks to operate as an electronic payment instruments service provider (EPISP) in Japan. This forced the financial institution to complete the registration process for EPISP with the relevant Japanese authority.
Circle Seeks to Increase the Adoption of USDC in Japan
An announcement conveyed by the chief executive of SBI Holdings, Yoshitaka Kitao, revealed that the collaboration with Circle aims to increase the adoption of stablecoin in Japan.
The CEO confirmed with the changes in the financial landscape Japan forced the company to invest in laying a solid foundation for stablecoin issuance and circulation in the region.
Elsewhere, the chief executive of Circle, Jeremey Allaire, stated that the partnership with SBI Holdings portrays the shared vision for the future of crypto in Asia.
The CEO admitted that the partnership aims to support Circle’s global expansion plan. Allaire anticipates that through the collaboration with SBI Holdings Circle will introduce its full-stack Web3 services to the Japanese market.
The CEO projects that the adoption of Circle’s Web3 services will allow the developers to create blockchain-powered Web3 applications. Allaire believes partnering with SBI Holdings will support Circle to onboard more creators to the Web3 sector. This exciting development will support the development of games and other entertainment projects.
Crypto Adoption Increase in Japan
The CEO was delighted to state that collaboration with SBI Holdings will redefine the Japanese financial market by setting new standards. According to report the SBI affiliate company Shinsei Bank will provide banking services to Circle.
This development aims to allow Japanese investors and business entities to access USDC through the SBI platform. Under the MOU, SBI Holdings will leverage Circle’s Web3 services, including Programmable wallets, smart contract management tools, and blockchain infrastructures to improve its financial products.
Besides expanding to Japan the stablecoin issuer is eying to enter Africa and Latin America. Currently, the US USDC adoption reached 70% which triggered growing demand for stablecoin in the Middle East and North Africa (MENA).