SBI Holdings, Inc. has reached a historic collaboration with global fintech giant Circle Internet Financial, announcing the promotion of the USDC stablecoin in Japan and jointly exploring a new bridge between banking services and Web3 technology.
Japanese financial giant SBI and Circle establish cooperation bridge
SBI Holdings, Inc. (hereinafter referred to as SBI), a Tokyo-based financial giant, has signed a memorandum of understanding (MOU) with Circle Internet Financial (headquartered in Boston, USA, hereinafter referred to as Circle). This memorandum not only means that the two companies will cooperate to promote the circulation of stablecoin USDC in Japan, but also establish in-depth banking relationships and promote the application of Circle's Web3 services in Japan.
Japanese government regulations support stable currency circulation
With the Japanese government amending the Payment Services Act (Revised Funds Settlement Act) on June 2023, 6, and establishing new regulations for stablecoins, Japan is actively moving towards the transformation of the Web3 economic system. The promulgation of this regulation is expected to promote the issuance and circulation of stablecoins in Japan.
USDC’s unique advantages
Circle's stablecoin USDC is not only collateralized by fiat currency, but also guaranteed to be 100% backed by highly liquid cash and cash equivalents. USDC's reserve funds are separated from Circle's operating funds and stored in top financial institutions to ensure the interests of USDC holders. As of November 2023, 11, USDC's on-chain transaction volume has exceeded US$17 trillion.
Realize the circulation of USDC in Japan
According to the MOU signed this time, SBI Group and Circle will first start working on the circulation of USDC and expanding the use of stablecoins in Japan.In addition, the two companies also pledged to comply with regulations related to stablecoins, including communication and coordination with authorities.
Banking Services and Web3 Solutions
SBI Shinsei Bank will provide banking services to Circle to support the availability and liquidity of USDC to Japanese businesses and users.In addition, as part of 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.
The views of the leadership of both parties
Jeremy Allaire, co-founder and CEO of Circle, said that the cooperation with SBI Holdings reflects a shared vision for the future of digital currency and is an important milestone in Circle's expansion plan in Japan and the Asia-Pacific region.
Yoshitaka Kitao, the representative director and president of SBI Holdings, said that Japan is steadily preparing for the full introduction of stablecoins, and they are pleased to have reached a basic agreement on a comprehensive business alliance with Circle, which is the first step in the widespread promotion of stablecoins in Japan. "In June 2023, the revised funds settlement law was implemented in Japan, and the establishment of a system related to stablecoins began. Against this background, we are very pleased to announce that we have reached a basic cooperation agreement with Circle, which operates and issues USDC, a stablecoin with a global market value of nearly 6 trillion yen and widely used in more than 4 countries. This marks the first step in promoting stablecoins in Japan. The SBI Group will go all out to realize a new financial model based on stablecoins."
