SBI Holdings and Circle have forged a strategic partnership to implement Circle’s Web3 solutions, distribute USDC stablecoins, and establish a banking connection. Yoshitaka Kitao, Chairman, Representative Director, President, and CEO of SBI Holdings, along with Jeremy Allaire, Co-Founder, Chairman, and CEO of Circle Internet Financial, issued an official statement announcing this collaboration.

In addition to setting up a banking connection and promoting the adoption of Circle’s Web3 solutions in Japan, the two prominent organizations will work together to launch USDC stablecoins, as per their mutual agreement. USDC, a globally recognized certified stablecoin, is provided by Circle, a company specializing in financial technology.

Japan is renowned for its digital asset economy, and the government amended its Payment Services Act on June 3, 2023, to establish the necessary regulations for stablecoins. These amended regulations will facilitate the issuance and circulation of stablecoins in Japan, advancing the country towards the Web3 economy.

The amended Payment Services Act introduces legal tender-backed collateralized stablecoins, with Circle’s USDC leading the way due to its complete reliance on highly liquid cash and cash-equivalent assets, maintaining a 1:1 conversion to US dollars. USDC reserves are segregated from Circle’s operational funds at top-tier financial institutions. Recent blockchain transactions using USDC have totaled $12.7 trillion.

As part of the agreement between the two companies, they will initially engage in USDC circulation and later explore the use of stablecoins in Japan, committing to strict compliance with established stablecoin regulations and ongoing communication with relevant authorities. Tomohiko Kondo, president of SBI VC Trade Co. Ltd., is pursuing certification and authorization as an electronic payment instrument service to distribute USDC stablecoins in Japan.

Katsuya Kawashima, President and CEO of SBI Shinsei Bank Limited, will facilitate banking solutions for Circle, enabling USDC to connect and provide liquidity for enterprises and users in Japan. Additionally, as part of SBI Group’s digital asset strategy, SBI Group will adopt Circle’s Web3 solutions, including the Programmable Wallet, blockchain framework, and smart contract control tools.

Jeremy Allaire, CEO and Co-Founder of Circle, expressed that the collaboration will strengthen the future of digital currency and aligns with Circle’s goal of expanding its business in Japan and the Asia Pacific region.

Yoshitaka Kitao, Representative Director, Chairman, President, and CEO of SBI Holdings, expressed enthusiasm for the collaboration with Circle, a company behind USDC with a market capitalization of $4 trillion yen, approved in over 190 countries and still expanding. He sees this partnership as the first step towards widespread acceptance of the USDC stablecoin.