SBI Holdings, Inc. has signed a Memorandum of Understanding (MOU) with Circle Internet Financial, a global fintech firm known for issuing USDC, the world’s largest regulated stablecoin. The agreement aims to promote the use of USDC stablecoins in Japan, establish a banking relationship, and support the adoption of Circle’s Web3 Services.
Japan, recognizing the significance of digital assets, recently updated its Payment Services Act on June 3, 2023, introducing regulations for stablecoins. These regulations are anticipated to encourage the issuance and use of stablecoins in Japan, contributing to the country’s shift towards a Web3 economy.
Under the Revised Payment Services Act, stablecoins must be “collateralized,” meaning they are backed by legal tender. Circle’s USDC takes it a step further by being 100% backed by highly liquid cash and cash-equivalent assets, ensuring that each USDC can be redeemed 1 to 1 for U.S. dollars.
The funds backing USDC are kept separate from Circle’s operational funds in reputable financial institutions. As of November 17, 2023, there had been over $12.7 trillion worth of on-chain USDC transactions.
The companies have agreed to a Memorandum of Understanding (MOU) outlining their collaboration. Initially, SBI Group and Circle will focus on promoting the use of USDC and expanding the adoption of stablecoins in Japan. Both companies have committed to complying with regulations related to stablecoins, including maintaining open communication with relevant authorities.
To enable the circulation of USDC stablecoins in Japan, SBI VC Trade Co., Ltd. is in the process of seeking approval from authorities for registration as an electronic payment instrument service.
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