SBI Holdings Partners with Circle to Pave the Way for Digital Currency Innovation in Japan

SBI Holdings, Inc. has announced a groundbreaking Memorandum of Understanding (MOU) with Circle Internet Financial, a global financial technology firm known for issuing USDC, the world's largest regulated stablecoin. This collaboration aims to introduce USDC stablecoins, establish a banking relationship, and promote Circle's Web3 Services across Japan.

The move comes following Japan's government amendments to the Payment Services Act in June 2023, solidifying regulations for stablecoins. This regulatory framework is anticipated to encourage the issuance and circulation of stablecoins in Japan, facilitating the country's transition towards a Web3-enabled economy.

Under the Revised Payment Services Act, regulated stablecoins must be collateralized by legal tender. Notably, Circle's USDC surpasses these requirements by being 100% backed by highly liquid cash and cash-equivalent assets, redeemable 1-to-1 for U.S. dollars. Separate from Circle's operational funds, USDC reserves are safeguarded at leading financial institutions, with over $12.7 trillion in on-chain USDC transactions recorded as of November 17, 2023.

The MOU between SBI Group and Circle lays the groundwork for various initiatives, including the introduction of USDC circulation and expanding the adoption of stablecoins in Japan. Both entities pledge to comply rigorously with stablecoin-related regulations, ensuring transparent communication with regulatory authorities. SBI VC Trade Co., Ltd. is actively pursuing registration as an electronic payment instruments service to facilitate USDC circulation, subject to regulatory approval.

Moreover, SBI Shinsei Bank, Limited commits to providing banking services to Circle, enhancing USDC accessibility and liquidity for businesses and users in Japan. As part of SBI Group's digital asset portfolio strategy, the organization will integrate Circle's Web3 Services, including Programmable Wallet, blockchain infrastructure, and smart contract management tools.

Jeremy Allaire, CEO and co-founder of Circle, expressed enthusiasm, stating, "Our partnership with SBI Holdings signifies a shared vision for the future of digital currency and marks a significant milestone in Circle's expansion plans in Japan and the Asia Pacific. We look forward to setting new benchmarks in Japan's financial sector through collaboration with SBI."

Yoshitaka Kitao, Representative Director, Chairman, President & CEO of SBI Holdings, affirmed the significance of this alliance, saying, "Japan is actively laying the groundwork for the widespread introduction of stablecoins, as seen through the revised Payment Services Act implemented in June 2023. We are delighted to forge this comprehensive business alliance with Circle, a steward of USDC, and take the inaugural steps toward extensive stablecoin adoption in Japan. SBI Group is committed to unlocking new financial possibilities through stablecoins."

This strategic collaboration between SBI Holdings and Circle marks a pivotal moment in Japan's digital currency landscape, signaling a concerted effort towards embracing stablecoins and Web3 innovations for a dynamic financial future.