Stablecoin issuer Circle has partnered with the leading Japanese financial services conglomerate, SBI Group. The move will increase the circulation and adoption of the USDC stablecoin in Japan and promote the use of Circle’s Web3 Services in the country.
On Nov. 27, Circle announced its latest partnership as the company continues its global expansion into Japan.
Japan Greenlights Stablecoins
In addition to promoting the use of its stablecoin, Circle also wants to establish a banking presence in Japan.
Moreover, the move comes around six months after the Japanese government revised the Payment Services Act to establish regulations for stablecoins in June.
The Revised Payment Services Act establishes “collateralized” stablecoins. These are backed by legal tender and are expected to stimulate the issuance and circulation of stablecoins in Japan.
Circle asserts that USDC is backed “100% by highly liquid cash and cash-equivalent assets.”
The MOU between the two firms includes SBI Group and Circle initially working towards the circulation of USDC. To achieve this, SBI VC Trade is seeking registration as an electronic payment instruments service. However, it has yet to be approved.
If you want to learn more about stablecoins like Circle’s USDC, check out BeInCrypto’s guide here!
Additionally, SBI Group will adopt Circle’s Web3 Services solutions such as Programmable Wallet, blockchain infrastructure, and smart contract management tools, the announcement stated.
CEO and co-founder of Circle, Jeremy Allaire, commented:
“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,”
Yoshitaka Kitao, President and CEO of SBI Holdings, added, “Japan is steadily preparing the groundwork for the full-scale introduction of stablecoins,”
The move is part of Cicrle’s ongoing efforts to distance itself from the crypto crackdown in the United States and expand globally.
In June, Circle was granted a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), the country’s central bank.
Ecosystem Outlook
Circle’s stablecoin market share has dwindled over the past 18 months to just 19%. Since its peak supply of $56 billion in June 2022, circulation has shrunk 56% to just $ 24.6 billion today. Circle suffered earlier this year due to its exposure to the now-bankrupt Silicon Valley Bank.
Tether commands the stablecoin market with a share of 68.5%, having almost $89 billion USDT in circulation. Moreover, its supply has increased by 35% since the beginning of 2023.
The total stablecoin market cap is $129.5 billion, according to Coingecko. It represents 8.7% of the total crypto market cap, a fraction that has halved over the past year or so.
Earlier this month, Circle phased out the USD Coin moniker, rebranding to just USDC.
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