Circle and SBI Holdings Partner to Promote Stablecoins in Japan

SBI Holdings, a Japanese financial services company, partnered with Circle, a global FinTech, to promote the use of stablecoins in Japan.

The collaboration comes after the Japanese government revised the Payment Services Act in June to regulate stablecoins, signaling its commitment to the transition toward a Web3 economy, the companies said in a Monday (Nov. 27) press release.

“SBI Group is committed to wholeheartedly working toward realizing new financial possibilities using stablecoins,” Yoshitaka Kitao, representative director, chairman, president and CEO of SBI Holdings, said in the release.

One of the key aspects of the partnership is the circulation of USDC stablecoins, the regulated stablecoin issued by Circle, according to the release. USDC is backed 100% by cash and cash-equivalent assets, ensuring that each USDC is redeemable for 1-to-1 U.S. dollars. The reserves backing USDC are held separately from Circle’s operating funds, providing additional security for USDC holders. To date, there have been over $12.7 trillion worth of on-chain USDC transactions.

To solidify their partnership, SBI Holdings and Circle have signed an agreement outlining their joint efforts to circulate USDC and expand the use of stablecoins in Japan, the release said. Both companies are committed to complying with stablecoin-related regulations and maintaining open communication with authorities.

SBI VC Trade Co., a subsidiary of SBI Holdings, is seeking registration as an electronic payment instruments service to facilitate the circulation of USDC stablecoins within Japan, pending approval by the authorities, per the release. Additionally, SBI Shinsei Bank, another subsidiary of SBI Holdings, will provide banking services to Circle, ensuring sufficient liquidity and access to USDC for Japan-based businesses and users.

As part of SBI Group’s digital asset portfolio strategy, the company will adopt Circle’s Web3 services solutions, including Programmable Wallets, blockchain infrastructure and smart contract management tools, according to the release.

“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,” Circle CEO and Co-founder Jeremy Allaire said in the release.

In another partnership, Circle teamed up with Coins.ph, a cryptocurrency exchange and digital wallet provider, in October to raise awareness about the benefits of using USDC for international money transfers. Together, the companies will promote financial inclusion through remittances in the Philippines.

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