Circle, USDC’s issuer, has struck a partnership deal with Coincheck, one of Japan’s biggest crypto exchanges – with a view to securing the stablecoin’s first listing in the nation.
Per a Coincheck press release, the Japanese firm said that it had taken “steps toward handling USDC.”
Circle, USDC Aiming for Japanese Success
Circle claimed that Coincheck was “planning to expand access to” its USD-pegged coin. The Japanese firm is run by Monex Group, a major securities firm that in December last year bought a majority stake in the 3iQ platform.
However, regulatory obstacles still stand in the token’s way. Japanese crypto exchanges have yet to list any major USD-backed coins.
Regardless, fiat-pegged coins like USDC and USDT enjoy considerable popularity throughout Asia.
To list a coin, exchanges must obtain “Electronic Payment Instrument Services” registration from regulators under the terms of the Japanese Payment Services Act.
We are thrilled that @coincheckjp is planning to expand access to $USDC to Japan! This marks a significant milestone in bringing the stability of USDC to Japan, and is a strategic expansion for USDC in Asia.
Read more about the collaboration here: https://t.co/DOdOxe1LgT pic.twitter.com/t93fYPoEl5
— Circle (@circle) February 27, 2024
But in recent months, Japanese regulators appear to have relaxed their stance on crypto regulation. Exchanges have added an increasing number of altcoins to their platforms.
The government has also backed Japanese firms in their own stablecoin bids. This has given rise to projects like megabank Mitsubishi UFJ’s plans to provide B2B stablecoin issuing services.
A Coincheck official said that the platform “recognizes that domestic crypto asset users have high expectations for the handling of stablecoins.” The company added:
“We expect stablecoins to be used as a settlement currency in the purchase and sale of cryptoassets and NFTs. This will likely lead to an increase in the trading volume of NFTs.”
Prime Minister Fumio Kishida and his government have previously identified Japan’s NFT sector as a growth engine for Japan.
The government has also unveiled plans to relax rules surrounding the way VC firms can invest in crypto companies.
The Japanese exchange added that “being able to take a step toward handling USDC” was “of great significance to our company and our customers.”
Source: Coincheck
USD-backed Stablecoins Ready to Take Off in Japan?
Dai Matsumoto, the CEO of Coincheck, said:
“We are excited to bring USDC, the global standard for stablecoin tokens, to Japan. We look forward to working with Jeremy [Allaire, the Co-founder and CEO of Circle] and the Circle team. Together, we plan to further develop Japan’s crypto market and blockchain ecosystem.”
Trading volumes on the Coincheck crypto exchange over the past 12 months. (Source: CoinGecko)
Allaire said that Circle’s partnership with Coincheck would be “the foundation for building USDC’s stability and credibility in the Japanese market.” He concluded:
“We are very pleased to be able to work with Coincheck to pioneer a new era of digital finance in Japan.”
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