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- Circle’s USDC becomes the first stablecoin approved for use in Japan through a partnership with SBI Holdings.
- The approval process took over two years, involving close collaboration with Japanese regulators and firms.
- USDC’s approval enhances its presence in Japan, with listings planned on major exchanges like Binance Japan and bitFlyer.
Circle has a landmark moment through the approval of its dollar-pegged stablecoin – USDC – into Japan. This means that USDC becomes the first stablecoin regulate in the country. This can be attributed to its partnership with SBI Holdings that saw it receive an approval. USDC is set to be launched in Japan on March 26. This is a milestone for Circle as well as the entire market of stablecoins.
Partnership with SBI Holdings
This is in sharp contrast to the approval process, which has taken over two years. According to Jeremy Allaire, the CEO of Circle, the firm closely engaged with the Japanese regulators and financial institutions. The intention was to conform with what is regarded as Japan’s rigorous quality control standards. Some of these regulations prove very strict in the country and there was no way that Circle could compromise them. The industry was approved through the involvement of partnering Japanese firms.
SBI Holdings will benefit Japanese users because of the partnership with Circle. SBI VC Trade that is owned by the SBI Holdings enables the user to purchase the USDC. This partnership will effectively make the availability of USDC in Japan to be more enhanced. Consequently, the stablecoin will be applied in a variety of industries including the financial and payment industry.
Thus, on March 4 SBI VC Trade celebrated its great success, reaching major goal. It is noteworthy that GMO Click became the first settlement service in Japan to receive permission to list USDC. This approval was done under Japan’s stablecoin legislation under the Financial Services Agency. Attaining this regulatory approval also enhances the legal status of USDC in the Japanese market.
Circle Strengthens Market Presence
Currently, it is establishing its dominance in the Japanese market. The firm intends to break a new ground and list USDC on several exchanges such as Binance Japan, bitbank, and bitFlyer,. This will go a long way in bolstering the USDC market share in the country. These listings will make USDC more outstanding and noticeable, thus increasing its popularity among more people in Japan.
SBI Holdings chief operating officer, Yoshitaka Kitao said that approval of USDC is a move towards financial the right direction towards financial liberalization. He stated that the partnership promotes blockchain solutions for payments and services. Such collaboration brought another step in the adoption of digital currencies to Japan’s financial system.
Through having the approval by USDC in Japan, Circle gets the competitive advantage in a stablecoin market. The market capitalization of the stablecoin is approaching $60 billion. This approval is quite significant for Circle both in Japan and other parts of the world.
