Japan’s top cryptocurrency trader, Coincheck, and USDC issuer, Circle, have announced a strategic partnership to expand access to digital currencies in the country.
The collaboration operates in the context of Japan’s recently implemented EPIS regulations, which mandate that stablecoin transactions comply with the Payment Services Act.
By using USDC, Coincheck hopes to improve the quality of its products and encourage the Japanese market to use stablecoins. This will be accomplished by utilizing USDC’s robust UI/UX design.
Japan has responded to the growing stablecoin industry with a proactive and regulatory approach. The country has established a new regulatory framework for “Electronic Payment Instruments Services” (EPIS) that deal with stablecoins. The Payment Services Act (PSA), which requires registration to operate EPIS, is highlighted by this framework as being extremely important. Regulations of this kind guarantee a safe and responsible stablecoin incorporation into Japan’s financial system.
Coincheck Inc., a Tokyo-based company led by Satoshi Hasuo, has added USDC to its range of products in light of the new rules. This demonstrates its dedication to both compliance and innovation. Jeremy Allaire, the co-founder and CEO of Circle Internet Financial, a U.S. fintech innovation, announced today that the two companies will work together to expand the USD Coin’s (USDC) market share in Japan.
USDC’s strategic expansion in Japan
If Coincheck can successfully register as an EPIS under Japan’s Payment Services Act, it can incorporate USDC into its offerings. By January 2024, Coincheck launched in 2014 and will have served over 1.91 million verified users. The business presents itself as Japan’s top bitcoin exchange as a result. Coincheck has integrated USDC to complement its user-centric interface and experience to promote stablecoin’s popularity throughout Japan.
This agreement represents a significant step forward in Coincheck’s effort to broaden its product offering while maintaining the highest U.I. and UX standards. Circle’s Jeremy Allaire expressed his excitement about this project’s potential to establish the foundation for digital finance in Japan. Concurrently, USDC’s managing director and chairman, Oki Matsumoto, of Coincheck and Monex Group, stated his excitement about making USDC the industry standard for stablecoins in Japan.
Hasuo and Allaire have expressed how excited they are about the possibility of this collaboration.
“We are ecstatic to be collaborating with Circle to introduce the stability and reliability of USDC to Japan,” Hasuo expressed. Allaire said, “This is a foundational step towards new opportunities for the Japanese market in digital finance.”
An Overview of the Data for USDC Stablecoin
Known for being a fully collateralized digital dollar, USDC may be redeemed 1:1 for U.S. dollars. With more than $24 billion in circulation and a market capitalization of $27 billion, the stablecoin is estimated to be worth 4 trillion yen. Consequently, digital currency is a significant player in the stablecoin space, accounting for about 20% of the market.
Top-tier financial institutions safely retain USDC reserves, which Circle strictly separates from its operating cash. The fact that USDC has enabled over $12 trillion worth of on-chain transactions shows its power. This extensive on-chain network confirms its position as a digital cornerstone for value storage, measurement, and payment innovation.
