The issuer of the USDC stablecoin, Circle, recently announced a partnership with the giant SBI Holdings targeting its expansion in Japan. In a statement released on November 27, SBI Holdings said it has concluded a Memorandum of Understanding (MOU) with Circle.
The objective of the partnership is to promote the circulation of USDC stablecoins, as well as establish a banking relationship and promote the use of Circle's Web3 services in Japan.
“The companies signed a memorandum of understanding underpinning future work, which includes SBI Group and Circle working initially to circulate USDC and expand the use of stablecoins in Japan. SBI Group and Circle have also committed to adequately comply stablecoin-related regulations, including communication with authorities,” he wrote in the release.
According to the document, to circulate USDC stablecoins in the country, SBI is seeking registration as an electronic payment instrument service, which is subject to approval by authorities.
“As a global leader in the digital asset economy, the Japanese government revised the Payment Services Law (the Revised Payment Services Law) on June 3, 2023, to establish regulations for stablecoins. The regulation is expected to stimulate the issuance and circulation of stablecoins in Japan and advance Japan's transition to a Web3 economy,” he highlighted.
The Revised Payment Services Law provides for the establishment of “collateralized” stablecoins that are backed by legal tender. “Circle’s USDC goes a step further because it is 100% backed by highly liquid cash and cash-equivalent assets and is always redeemable at a 1-to-1 ratio in US dollars. USDC reserves are held separately from Circle’s operating funds at major financial institutions for the benefit of USDC holders,” he argued.
At the time of publication, USDC price was quoted at $0,998622 down 0.2% in the last 24 hours. The cryptocurrency recorded a trading volume of US$9.626.996.714 during this period.
Millionaire Injection from SBI Holdings Accelerates the Future of Web3 and Fintech Startups
In the global panorama of finance and technology, a promising new development stands out: the Japanese financial giant SBI Holdings recently announced a colossal investment aimed at innovative startups in the field of Web3 and fintech. With an impressive fund of US$660 million, SBI's focus is to inject resources into 150 to 200 emerging companies, marking a strategic move that promises to reinvigorate the innovation ecosystem by the end of this year.
This financial effort by SBI Holdings comes as an agile response to the challenges faced by Japan in fostering an environment conducive to the flourishing of new companies. The amount invested per project varies significantly, signaling the seriousness and breadth of the company's vision of the future. The fund aims to not only provide substantial support to startups, but also establish a milestone in the country's technological and financial development.