Circle wants to take its USDC stablecoin to new frontiers.
The issuing company of USD Coin (USDC), the second most capitalized stablecoin in the market after Tether (USDT), has partnered with Tokyo, Japan-based financial services company SBI Holdings to put its stablecoin into circulation within this country, which is the fourth largest economy in the world and is widely known for its advanced technological development.
Jeremy Allaire, co-founder and CEO of Circle, expressed the stablecoin company's interest in taking advantage of the Japanese government's current enthusiasm for new Web3 technologies.
Allaire highlighted that the arrival of USDC in the Japanese market will boost the proliferation of new technologies and help grow the crypto ecosystem in general.
Through SBI Holdings, Circle will introduce its stablecoin USDC to the Japanese market, with the aim of promoting the use of its Web3 services portfolio and establishing a banking relationship in the country, allowing access to USDC liquidity for companies and users based in Japan, Allaire reported.
Circle prioritizes expanding USDC usage in Web3 nation
The introduction of USDC into the Japanese market will not only strengthen USDC’s position in the crypto industry but will also help Japan establish itself as a Web3 nation.
In a recently released statement, Circle detailed the progress that Japan has made in relation to the blockchain and Web3 industry. The company indicated that the country has become a undisputed leader in the digital asset economy, driving several initiatives related to the crypto industry. For example, Japan revised and put into effect a bill focused on the regulation of stablecoins, which establishes clear guidelines on the issuance and circulation of stablecoins within the country and with which the nation is expected to make significant progress in the transition towards a decentralized digital economy.
“Japan is the first major government in the world with this regulatory clarity in place”, Allaire said, regarding the regulation of stablecoins in the country.
According to this law, stablecoins that do not meet the high standards set by the Japanese Financial Services Agency (JFSA) will not be allowed to circulate in the country. Therefore, being a regulated stablecoin, Allaire points out that USDC can become Japan's new digital dollar.
Through this partnership, Circle’s co-founder and CEO hopes that USDC will integrate into Japan’s digital asset markets, as well as the country’s growing on-chain economy, and that it can be used as a new digital dollar for cross-border payments, currency trading, and other operations in the Japanese market.
At press time, USDC maintains a market cap of over $24.000 billion, which Circle says is “100% backed by highly liquid cash and cash-equivalent assets.”
Circle says each unit of its stablecoin is redeemable for one US dollar and that its cash reserves are kept separate from the company’s operating funds.
Continue reading: Circle announces official launch of USDC on Polygon
