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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.”

Katsunobu Katō, a Liberal Democratic Party politician and Japan's Minister of Finance under Prime Minister Shigeru Ishiba's government since October 2024, has said that cryptocurrency assets can play a role in a diversified investment portfolio. Katō made the remarks while speaking at an event that was held in Tokyo related to the subject of crypto assets on Aug. 25, according to Bloomberg. Katō stated:''Crypto assets run the risk of high volatility, but if an appropriate investment environment is created, they can become targets for diversified investment.''Photo by JJ Ying on UnsplashGrowing crypto user baseKatō acknowledged that there is a growing user base in Japan related to digital assets. With that, he intends to work towards the provision of a healthy trading environment in Japan for stakeholders within the digital assets sector. The finance minister added that he has been trying to balance regulation with a need to leave the digital assets sector with sufficient freedom so as to enable the development of innovation. Crypto tax reformIt emerged over the weekend that the Japanese financial regulator, the Financial Services Agency (FSA), intends to include tax reform measures in respect of the crypto sector in 2026 tax revision proposals that it will bring to the Japanese government. It’s expected that the proposals, scheduled for submission by the end of this month, will call for a separate taxation category for digital assets and the implementation of a flat 20% tax rate. Under Japan’s existing tax regimen, crypto trading gains must be reported under the categorization of “miscellaneous income,” with those gains subject to tax rates of up to 55%. The move would bring taxation on crypto trading gains in line with the tax treatment that’s currently in place for equity trading gains. Equities have been given their own category and are taxed at a flat rate of 20%. Reclassifying cryptocurrenciesAdditionally, the FSA plans to propose legislation next year that would result in the reclassification of cryptocurrencies, removing them from their current treatment as a means of payment under the Payment Services Act. The regulator wants crypto to come under the Financial Instruments and Exchange Act, reclassifying it as a financial product. Katō has outlined his party’s commitment to the consideration of reviewing crypto asset taxation. That item was incorporated into his government’s tax reform plan for 2025, while the Japanese cabinet approved a proposal to amend the Payment Services Act back in March. As part of plans to have digital assets categorized as financial products, the FSA is also understood to be interested in broadening the scope of insider trading restrictions. Kato’s remarks are being interpreted as positive for the crypto sector. According to International Monetary Fund (IMF) data, Japan is the world’s fifth-largest economy, with a gross domestic product (GDP) exceeding $4.1 trillion.Source: World Economic Outlook (April 2025)In further positive news for the sector in Japan, it was reported on Aug. 18 that the FSA is likely to approve the issuance of JPYC, a Japanese yen-backed stablecoin, over the course of the coming months.

Hana Bank to Establish Joint Digital Asset Custody Venture with BitGoSouth Korean commercial bank Hana Bank announced on Tuesday at Impact, the main event of Korea Blockchain Week (KBW) 2023, that it has signed an agreement with US-based digital asset trust company BitGo to undertake a joint venture for digital asset custody services in Korea.Photo by Chris Liverani on UnsplashBitGo’s Korean branch aims to kick off full-fledged operations for the venture in the second half of next year after obtaining Information Security Management System (ISMS) certification and completing registration as a virtual asset service provider (VASP).Fostering transparency and securityThe two entities will collaborate through multiple approaches, such as considering equity investments in the joint venture, working together on BitGo’s security solutions and digital asset custody technology, and leveraging Hana Bank’s expertise in financial services, security, and compliance. The scope of the partnership will expand as time goes on, they said.“By working with a global leader, we will contribute greatly to the enhancement of confidence in the Korean digital asset market as well as consumer protection,” Hana Bank said.BitGo’s ongoing global expansionBitGo has been offering digital asset custody services to institutional clients since 2013, serving over 1,500 institutions in more than 50 countries, including the US, Switzerland, and Germany. It also provides custodial services for over 700 different digital assets, including Bitcoin.“We aim to establish a long-term foundation in the Korean market, in line with the expected growth of the security token market there,” said Mike Belshe, CEO and Co-Founder of BitGo.