Circle has partnered with SBI Holdings to drive the adoption of the USDC stablecoin and Web3.
SBI Shinsei Bank, a subsidiary of SBI Holdings, will facilitate access to USDC in Japan.
To propel the adoption of the USDC stablecoin and advance Web3 services in Japan, Circle, the renowned issuer of USDC stablecoin, has entered into a promising partnership with SBI Holdings, a prominent Japanese financial conglomerate. The collaboration was solidified with the signing of a memorandum of understanding (MOU) on November 27, paving the way for USDC’s deliberate expansion into the Japanese market.
This collaboration between Circle and SBI Holdings gains significance against the backdrop of the Japanese government’s pivotal amendment to the Payment Services Act in June, which established regulatory frameworks for stablecoins. Circle envisions that these regulations will not only stimulate the issuance and circulation of stablecoins in Japan but also catalyze the nation’s transition towards a Web3 economy.
As part of the partnership, SBI Shinsei Bank, a subsidiary of SBI Holdings, will play a crucial role by providing banking services to Circle. This move aims to facilitate seamless access to USDC for businesses and users based in Japan, further enhancing the utility and accessibility of the stablecoin in the region.
USDC currently holds a market cap of $24.65 trillion, lagging behind the dominant USDT, which has a market cap of $88.8 trillion. USDC value peaked in mid-2022 but has steadily declined since its de-peg in March 2023, prompted by Silicon Valley Bank’s insolvency. However, USDC still has 20% of the market share.
SBI Holdings Moves into the Web3
SBI Holdings is making significant strides in the cryptocurrency realm. Earlier this month, Standard Chartered’s investment arm, SC Ventures, joined forces with SBI Holdings to unveil plans for a substantial $100 million crypto-focused joint venture in the UAE. The collaborative venture is poised to explore diverse sectors within the cryptocurrency space, including DeFi, tokenization, consumer payments, and the Metaverse.
Also, SBI Holdings plans to launch a new fund by year-end, allocating up to 100 billion yen ($670 million) for investments in emerging sectors like Web3, AI, and fintech startups. This initiative reflects the conglomerate’s commitment to driving innovation and technological advancement.