In Japan, the response to the burgeoning stablecoin sector has been proactive and regulatory in nature. The nation has instituted a new regulatory framework specifically for “Electronic Payment Instruments Services” (EPIS) that deal with stablecoins. This framework underscores the importance of compliance with the Payment Services Act (PSA), which necessitates registration for conducting EPIS. Such regulations are designed to ensure that the integration of stablecoins into Japan’s financial ecosystem is done securely and responsibly.

With this new regulation in place, Coincheck Inc., based in Tokyo with Satoshi Hasuo as its President, incorporates USDC into its product suite. This is a testament to its commitment to compliance and innovation. Circle Internet Financial, the U.S.-based fintech innovator led by Co-founder and CEO Jeremy Allaire, has today declared their collaboration aimed at broadening the reach of the USD Coin (USDC) in the Japanese market.

Strategic Expansion of USDC in Japan

Coincheck’s strategy to integrate USDC into its suite of offerings is contingent on its successful registration as an EPIS under Japan’s Payment Services Act. Since its inception in 2014, Coincheck has grown to serve over 1.91 million verified users by January 2024. Thus, the company positions itself as a leading cryptocurrency exchange in Japan. Coincheck’s integration of USDC is designed to harmonize with its user-centric interface and experience, promoting the stablecoin’s adoption across Japan.

This partnership marks a pivotal advancement in Coincheck’s quest to diversify its product spectrum while upholding superior UI and UX standards. Jeremy Allaire of Circle shared his enthusiasm about laying the groundwork for the future of digital finance in Japan through this venture. In tandem, Oki Matsumoto, the Managing Director & Chairman of Coincheck and Monex Group, expressed eagerness to establish USDC as the global stablecoin standard in the Japanese market.

Both Hasuo and Allaire have voiced their excitement about the potential this partnership holds.

“We are thrilled to be working with Circle to bring the stability and trust of USDC to Japan,” said Hasuo. Allaire added, “This is a foundational step towards new opportunities in digital finance for the Japanese market.”

USDC Stablecoin: A Statistical Overview

USDC, recognized as a fully collateralized digital dollar, boasts a 1:1 redeemability with the U.S. dollar. The stablecoin has a market cap of $27 billion, approximately 4 trillion yen, and over $24 billion in circulation. Thus, digital currency stands as a prominent figure amongst stablecoins, as it dominates around 20% of the sector.

Source: DefiLlama

Circle upholds a stringent separation of its operating funds from the USDC reserves, which top-tier financial institutions securely hold. USDC’s influence is evident by its facilitation of more than $12 trillion in total on-chain transactions. This massive on-chain network solidifies its role as a digital cornerstone for value storage, measurement, and payment innovation.

The post USDC Stablecoin Growth with Circle and Coincheck Deal in Japan appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am