SBI Holdings and Circle establish a strategic partnership to implement Circle’s Web3 solutions, distribute USDC stablecoins, and set up a banking connection. Chairman, Representative Director, President, and Chief Executive Officer of SBI Holdings, Yoshitaka Kitao, and Co-Founder, Chairman, and Chief Executive Officer of Circle Internet Financial, Jeremy Alliare, issued this official declaration.
In addition to establishing a banking connection and promoting the adoption of Circle’s Web3 solutions in Japan, the two leading organizations will collaborate on releasing USDC stablecoins, per their mutual agreement. USDC, an internationally recognized certified stablecoin, is supplied by Circle, an organization specializing in financial technology.
Japan is known to be at the top of the list in terms of its digital asset economy. On June 3, 2023, the government of Japan amended its Payment Services Act to set up the required regulations for stablecoins. The amended regulations will propel the release and circulation of stablecoins in Japan and will assist in moving the country in the direction of the Web3 economy.
The amended Payment Services Act establishes legal tender-backed collateralized stablecoins. Circle’s USDC stays a step ahead due to its complete reliance on highly liquid cash and cash-equivalent assets. They continue to be 1:1 convertible to US dollars. USDC reserves are segregated from Circle’s operating funds at premier USDC-owner financial institutions. Recently, USDC transactions on the blockchain have totaled $12.7 trillion.
In accordance with the agreement reached by both companies, they will initially participate in the circulation of USDC and then move on to using stablecoins in Japan. They have made a solemn commitment to strictly comply with the established stablecoins regulations and maintain communication with the appropriate authorities. Tomohiko Kondo, president of SBI VC Trade Co. Ltd., is seeking certification and authorization as an electronic payment instruments service in order to distribute USDC stablecoins in Japan.
The President and CEO of SBI Shinsei Bank Limited, Katsuya Kawashima, will be responsible for offering banking solutions to Circle. This will allow USDC to connect and create liquidity for enterprises and users in Japan. Additionally, as a segment of SBI Group’s digital asset collection plan, SBI Group will accept Circle’s Web3 solutions like the Programmable Wallet, blockchain framework, and smart contract-control tools.
According to the CEO and Co-Founder of Circle, Jeremy Allaire, the collaboration will reinforce the future of digital currency and fits in perfectly with Circle’s goal of spreading its business in Japan and Asia Pacific.
According to Yoshitaka Kitao, Representative Director, Chairman, President, and CEO of SBI Holdings, they are thrilled to have been given the opportunity to collaborate with Circle, a firm that is releasing USDC and has a $4 trillion yen market capitalization. It has been approved in over 190 countries and is still expanding. According to him, this is the first step toward widespread acceptance of the USDC stablecoin.