Circle’s partnership with SBI Group aims to expand USDC stablecoin adoption and use of Circle’s Web3 Services in Japan.
SBI Group and Circle have also pledged to appropriately abide with stablecoin-related laws, including engaging with authorities. SBI VC Trade Co., Ltd. (main office: Minato-ku, Tokyo) is requesting registration as an electronic payment instrument service, subject to government permission, to circulate USDC stablecoins in Japan.
According to Circle’s website, the partnership aims to localize the coin and its Web3 services for the Japanese market. The parties reached a consensus in the midst of the Japanese government’s ongoing efforts to create stablecoin legal guidelines. Circle’s co-founder and CEO, Jeremy Allaire stated:
“Our partnership with SBI Holdings represents a shared vision for the future of digital currency, and is a significant milestone in Circle’s expansion plans in Japan and Asia Pacific.”
The Circle team had previously declared they would introduce a stablecoin in Japan in July 2023. Stablecoins now have the status of digital money under new Japanese law.
According to Jeremy Allaire, CEO and co-founder of Circle, the agreed paper is a significant step toward Japan being among the first nations to develop a legal framework for regulating such crypto-assets.
However, it is illegal to transact in Japan using stablecoins correlated with currencies other than the yen, such as USDT. This prohibition will end on May 6 and banks will be permitted to issue stablecoins linked to several global currencies.
