SBI Holdings and Circle have cemented a strategic alliance aimed at integrating Circle's cutting-edge Web3 solutions, distributing USDC stablecoins, and establishing a pivotal banking connection. Yoshitaka Kitao, Chairman, Representative Director, President, and CEO of SBI Holdings, alongside Jeremy Allaire, Co-Founder, Chairman, and CEO of Circle Internet Financial, jointly issued an official statement heralding this transformative collaboration.

In addition to forging a vital banking connection and spearheading the adoption of Circle's Web3 solutions across Japan, the two industry giants are poised to collaboratively introduce USDC stablecoins, marking a significant milestone in their shared vision. USDC, a globally renowned certified stablecoin, is crafted by Circle, a frontrunner in financial technology innovation.

Japan stands as a prominent player in the digital asset ecosystem, having recently amended its Payment Services Act on June 3, 2023, to enact regulations governing stablecoins. These regulatory enhancements are poised to streamline the issuance and circulation of stablecoins within Japan, propelling the nation towards embracing the transformative potential of the Web3 economy.

Under the revised Payment Services Act, legally tender-backed collateralized stablecoins are introduced, with Circle's USDC leading the charge by virtue of its robust backing by highly liquid cash and cash-equivalent assets, ensuring a steadfast 1:1 conversion to US dollars. Notably, USDC reserves are meticulously segregated from Circle's operational funds, safeguarded within top-tier financial institutions. Recent blockchain transactions utilizing USDC have collectively surpassed an impressive $12.7 trillion.

As part of their collaborative pact, both entities will initially focus on facilitating USDC circulation, subsequently exploring the broader utilization of stablecoins within Japan. A steadfast commitment to stringent compliance with established stablecoin regulations and ongoing dialogue with relevant regulatory bodies underpins their collaborative efforts. Tomohiko Kondo, President of SBI VC Trade Co. Ltd., is spearheading efforts to secure certification and authorization as an electronic payment instrument service for the distribution of USDC stablecoins within Japan.

Katsuya Kawashima, President and CEO of SBI Shinsei Bank Limited, is tasked with orchestrating robust banking solutions for Circle, empowering USDC to seamlessly interface and provide liquidity for enterprises and end-users across Japan. Furthermore, as an integral component of SBI Group's digital asset strategy, SBI Group is set to embrace Circle's suite of Web3 solutions, including the Programmable Wallet, blockchain framework, and smart contract control tools.

Jeremy Allaire, CEO and Co-Founder of Circle, expressed his optimism regarding the collaborative venture, emphasizing its pivotal role in fortifying the future of digital currency adoption. This partnership aligns seamlessly with Circle's overarching objective of expanding its footprint within Japan and the broader Asia Pacific region.

Yoshitaka Kitao, Representative Director, Chairman, President, and CEO of SBI Holdings, echoed sentiments of enthusiasm for the collaboration with Circle, lauding the company behind USDC for its global market capitalization of ¥4 trillion, approved presence in over 190 countries, and steadfast expansion trajectory. Kitao views this partnership as a seminal stride towards universal acceptance of the USDC stablecoin and looks forward to its transformative impact on the digital currency landscape.