Circle taps Coinheck to expand its services in Japan

Stablecoin issuer Circle announced ‘plans for a partnership’ with Japanese crypto exchange Coincheck to expand USDC access in the Asian market.

According to a press release on Feb. 27, Circle plans to incorporate USD Coin (USDC) in Coincheck for its products and services. However, the deal is yet subject to obtaining registration of an Electronic Payment Instrument Services under the Payment Services Act, the stablecoin issuer noted.

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

Circle CEO Jeremy Allaire says the partnership is “foundational in bringing the stability and reliability of USDC to the Japanese market.” The move aligns with Circle’s new strategy aimed at Asia, where venture capital firms and crypto investors appear to be allocating their funds.

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In November 2023, Circle forged a partnership with SBI Holdings to establish banking ties and promote the adoption of its services in Japan. Under this collaboration, USDC is expected to gain access and liquidity within Japan-based businesses and among users, while SBI Group is set to integrate Circle’s solutions, including programmable wallets.

As crypto.news earlier reported, Circle’s efforts underscore the evolving regulatory landscape in Japan, particularly regarding stablecoins, which have been classified as digital money under new legislation. At the time, the Circle CEO expressed optimism about the potential of this regulatory framework to position Japan as a pioneer in establishing clear regulations for such crypto-assets.

This announcement closely follows another deal between Circle and Overdare, a company backed by Krafton, aimed at expanding the utility of programmable USDC wallets in the metaverse. Through this partnership, Circle will integrate its programmable wallets, offering a wallet-as-a-service solution, into Overdare’s platform, enabling game content creators to receive payouts in USDC directly through the gaming platform.

Read more: Coincheck remains profitable after paying $432m for NEM hack

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