Circle, the US-based financial services company and issuer of the popular stablecoin USDC, is exploring the possibility of issuing a stablecoin in Japan.
In an interview, Jeremy Allaire, co-founder, and CEO of Circle, stated that he thought Japan might become a key market for stablecoins, especially if they become widely accepted in cross-border trading.
Following adopting Japan’s new stablecoin issuance regulations on June 1, Allaire made an upbeat remark. Allaire stressed the company’s desire to collaborate with Japan, the world’s third-largest economy, even if he did not reveal any specifics regarding Circle’s future stablecoin offering.
A stablecoin-related bill was enacted by the Japanese parliament in June 2022, requiring that these digital assets be tied to the yen or another fiat currency.
The law also guarantees stablecoin holders the ability to redeem them for their face value. The bill also clarifies that only authorized banks, registered money transfer firms, and trust companies are permitted to create stablecoins, which gives the market certainty and regulation.
The Monetary Authority of Singapore recently granted Circle a license for a Major Payment Institution, marking a significant milestone in the company’s aggressive expansion in Asia.
This license permits Circle’s subsidiary, Circle Internet Singapore, to provide domestic and international money transfer services and digital payment token services within Singapore.
Interestingly, the biggest bank in Japan, Mitsubishi UFJ Financial Group, has also expressed interest in stablecoins. The bank announced its Progmat Coin platform in June to make stablecoin issuance and trading more accessible.
