According to reports, Circle, the issuer of the USDC stablecoin, is said to be considering the launch of a stablecoin in Japan. This decision comes in light of new crypto regulations implemented in Japan. Jeremy Allaire, the co-founder, and CEO of Circle, expressed his optimism about the potential of Japan as a significant market for stablecoins, especially in cross-border trade.
Allaire’s positive statement comes after the introduction of Japan’s stablecoin regulations on June 1. Although he did not provide specific details about Circle’s stablecoin offering, he highlighted the company’s interest in establishing partnerships within Japan, which is the third-largest economy in the world.
In June 2022, Japan passed a bill that focuses on stablecoins. The bill mandates that these digital assets must be tied to the yen or another fiat currency. It also ensures that stablecoin holders can redeem them at their full face value. Furthermore, the legislation specifies that only licensed banks, registered money transfer agents, and trust companies are allowed to issue stablecoins, providing oversight and clarity to the market.
Circle has been actively expanding its presence in Asia and recently achieved a significant milestone by obtaining a Major Payment Institution license from the Monetary Authority of Singapore. This license allows Circle’s affiliate, Circle Internet Singapore, to provide digital payment token services and domestic and cross-border money transfer services within Singapore.
Interestingly, Mitsubishi UFJ Financial Group, Japan’s largest bank, has also shown interest in stablecoins. In June, the bank unveiled its Progmat Coin platform, which aims to facilitate the issuance and trading of stablecoins.