Crypto.com’s Dubai-based subsidiary secures crypto license

Circle and SBI Holdings join forces to propel USDC growth in JapanIn a move aimed at advancing the adoption of the USD Coin (USDC) in the Japanese market, stablecoin issuer Circle and Japanese financial behemoth SBI Holdings have entered into a memorandum of understanding (MOU).Photo by Alex Knight on UnsplashBanking and distributionThe collaboration, outlined in a press release published on Monday, seeks to enhance the circulation of USDC, establish a robust banking relationship and broaden the footprint of Circle in the Asian nation.Key subsidiaries of SBI Holdings are set to play pivotal roles in this strategic partnership. SBI’s VC Trade Limited, among others, will actively engage by applying for licensing as an electronic payment instruments service, facilitating the distribution of USDC across Japan. Notably, this move aligns with efforts to propel the electronic payment ecosystem in the country.Further solidifying the collaboration, SBI’s Shinsei Bank will provide crucial banking services that empower access to USDC and enhance liquidity for businesses and users based in Japan. This initiative not only promotes the widespread usage of USDC but also establishes a secure financial infrastructure for its seamless integration into the Japanese market.Web3 service offeringAs part of this collaboration, the SBI Group plans to incorporate Circle’s Web3 Services solutions, encompassing programmable wallets, blockchain infrastructure and smart contract management tools.Circle has been busy in recent weeks, rolling out partnerships in the Asian region that will see greater use of its Web3 Services suite. In Taiwan, it partnered with a convenience store chain recently, in a move that will integrate its Web3 services into the Taiwan FamilyMart app. A similar deal was struck in September with Grab, a Southeast Asian multifaceted super-app.Jeremy Allaire, CEO of Circle, expressed the groundbreaking nature of this partnership, envisioning USDC as a stablecoin that can be extensively utilized in Japan’s burgeoning on-chain economy across various consumer-led Web3 product categories.Allaire had signaled an interest in delving further into the Japanese market back in July. Then, he suggested that the company might consider launching a stablecoin in Japan but that it was also interested in exploring partnerships in the East Asian country.Yoshitaka Kitao, CEO of SBI Holdings, commended Japanese authorities for creating a regulatory environment conducive to the adoption of stablecoins within the region. In June, Japan passed legislation mandating that stablecoins must be fully backed by highly liquid cash and cash-equivalent assets, preventing a recurrence of issues experienced by certain stablecoins.SBI’s digital asset involvementWhile Circle has very much been advancing its service offering in the Asian region in 2023, likewise SBI has been delving further into the realm of digital assets and Web3. In April it led a funding round into Standard Chartered subsidiary company Zodia Custody, a digital asset custodian. SBI has also invested in Zodia Markets, an exchange and brokerage platform which is also a Standard Chartered subsidiary company.SBI Holdings established the Osaka Digital Exchange (ODX) in 2021, a crypto exchange business which will commence security token trading next month. In a social media post on the X platform, Allaire highlighted SBI’s involvement in the digital assets space:“Importantly, Kitao-san is not a ‘johnny come lately’ to crypto and blockchain tech. He has understood it and invested in it for nearly a decade. SBI Holdings already operates digital asset trading, brokerage and cross-border payments solutions.”

Sei Labs, the development firm behind the layer one Sei blockchain, has recently secured a total of $50 million in strategic funding rounds. The funding was raised from investors such as Jump, Distributed Global, Multicoin, Asymmetric, Flow Traders, Hypersphere, and Bixin Ventures.This funding will be used to accelerate Sei Labs’ growth and expand its presence in the Asia-Pacific region. The firm is seeking to position Sei as the fastest Layer one blockchain for trading, while driving the development of the digital asset ecosystem worldwide. Asia-Pacific market demandAccording to the firm, there’s a growing demand for innovative blockchain solutions in the Asia-Pacific region and it aims to solidify its presence in that market. Sei Labs’ mission is to build the best infrastructure for trading by offering chain-level optimizations for decentralized exchanges and trading apps that aim at performance and scalability.The project has been growing rapidly during its development phase, with over 120 teams already deploying on Sei ahead of the mainnet launch. This indicates strong developer support. Furthermore, Sei’s latest public testnet, which went live on March 13th, has already attracted over 3.6 million unique users and processed over 35 million transactions in less than a month, showcasing the robustness and scalability of the Sei blockchain.Sei Labs aims to tap into the vast market opportunities in the Asia-Pacific region and provide cutting-edge trading infrastructure to meet the needs of the rapidly evolving digital asset landscape. With the additional funding and strategic partnerships in place, Sei Labs is well-positioned to further enhance its offerings and drive its expansion plans in the Asia-Pacific region. Bitget investmentOne of the strategic partners that Sei Labs has locked in is Seychelles-based Bitget, a leading crypto derivatives exchange platform. Bitget has invested $20 million in the company, and the two companies will collaborate to build a new decentralized exchange (DEX) that will integrate with Bitget’s existing trading platform. This new DEX will be built on Sei’s high-performance Layer 1 blockchain, offering users fast, secure, and low-cost trading.Bitget’s investment in Sei Labs will also help to strengthen the company’s ecosystem, which aims to provide users with a comprehensive suite of services for trading and managing digital assets. Bitget is committed to supporting Sei Labs’ mission to build the best infrastructure for trading, and the collaboration between the two companies is expected to bring new and innovative products to market. Foresight Ventures partnershipAnother strategic partner that Sei Labs has locked in is Foresight Ventures, a venture capital firm that focuses on investing in innovative technology companies. Foresight has invested $10 million in Sei Labs, and the two companies will collaborate to drive the development of the digital asset ecosystem worldwide.The investment from Foresight will help Sei Labs to accelerate the adoption of its blockchain technology and expand its global reach. The collaboration between the two companies will also enable Sei Labs to benefit from Foresight’s expertise in technology investments and its global network of contacts.Sei Labs’ success in securing $50 million in strategic funding rounds highlights the growing interest in blockchain technology and its potential to disrupt traditional industries. Sei Labs is well-positioned to take advantage of this trend and become a dominant player in the blockchain industry. The company’s efforts will pave the way for more innovative solutions that will drive the global digital asset ecosystem forward.

The Japanese Financial Services Agency (FSA), a government body that oversees banking, securities and the digital assets market in Japan, is gearing up to approve the country’s first stablecoin pegged to the yen. Local media platform Nikkei reported on Aug. 18 that it is anticipated that the FSA will approve the issuance of the JPYC stablecoin in the coming months.Photo by Dayo Adepoju on UnsplashEfficient payment infrastructureJPYC, Inc. was founded by Noritaka Okabe in 2019, establishing the JPYC yen-pegged stablecoin in 2021. Okabe believes that the company can better enable innovation in Japan through a more efficient payment infrastructure that JPYC claims to provide via its stablecoin. Prior to launching the stablecoin, JPYC had entered into proof-of-concept and regulatory discussions with the FSA. The JPYC stablecoin has almost complete market dominance within its domestic market, with stablecoins to the value of 30 billion yen ($202.7 million) having been issued. In 2022, JPYC registered with the FSA as a third-party prepaid payment instrument service provider. It’s understood that the company will seek registration once again within the month, this time as a money transfer business. Japan’s Payment Services Act recognizes the issuance of stablecoins by banks, trust companies and money transfer businesses. JPYC backs its stablecoin with liquid assets such as Japanese government bonds and bank deposits. Growing stablecoin importanceOn a global basis, the leaders in terms of stablecoin market capitalization are Circle (USDC) and Tether (USDT), both U.S. dollar-pegged stablecoins. The U.S. recently enacted its GENIUS Act stablecoin legislation with many politicians and market commentators taking the view that USD-pegged stablecoins will promote ongoing use of the U.S. dollar internationally.U.S. Treasury Secretary Scott Bessent took to X on Aug. 18 on that topic, stating:”Stablecoins will expand dollar access for billions across the globe and lead to a surge in demand for U.S. Treasuries, which back stablecoins.”Foreign governments are starting to see the significance of supporting stablecoins pegged to their country’s sovereign currency. The ongoing development of U.S. dollar-pegged stablecoins has not escaped the attention of Chinese officials. In July, government officials in Shanghai held a meeting to explore policy strategies for stablecoins. The same month, Darryl Chan, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), said the authority was likely to issue its first stablecoin license in early 2026. His comments preceded the rollout of Hong Kong’s stablecoin regulatory framework on Aug. 1. Last week, JPYC’s Okabe said that JPYC would soon start "buying up Japanese government bonds.” He added, “The interest rates on government bonds in countries where stablecoin issuance does not grow will likely continue to rise. It’s no exaggeration to say that the interest rates on Japanese government bonds rest on JPYC’s shoulders.” Okabe is also going out of his way to draw a clear distinction between his company’s stablecoin and cryptocurrency. On X, he stated that “JPYC is an electronic payment method, not a cryptocurrency.” He went on to assert that given that the JPYC stablecoin is a currency-denominated asset whose value is linked to fiat currency, it incorporates the best qualities of both digital cash and deposits.