Circle, the company behind the USD Coin (USDC) stablecoin, has partnered with SBI Holdings, a Tokyo-based financial services firm, to promote USDC and Web3 services in Japan.

A memorandum of understanding (MOU) has been signed between the two companies on November 27 to expand the use of USDC in the country.

Before the agreement can take effect and enable the circulation of USDC stablecoins, SBI VC Trade Co., Ltd. will seek registration as an electronic payment instruments service, subject to approval by the Japanese authorities.

SBI Shinsei Bank, Limited is also appointed to provide banking services to Circle to ensure that businesses and users in Japan have access to USDC and can easily trade it.

The partnership comes after the Japanese government revised the Payment Services Act in June to establish regulations for stablecoins. 

Yoshitaka Kitao, CEO and President of SBI Holdings, views the collaboration as a significant step towards widespread adoption of stablecoins in the country.

CEO of Circle Jeremy Allaire has also expressed enthusiasm about the partnership, saying that it represents a shared vision for the future of digital currency in Japan and Asia.